Since 2008, FHFA, Fannie Mae and Freddie Mac, mortgage lenders and servicers have been working together to find ways to increase the number of homeowners who are able to refinance their mortgages through HARP. With mortgage interest rates at all-time lows, this is an opportune time to take advantage of this new HARP 2 Program. Refinancing your Fannie Mae or Freddie Mac-owned mortgage is now easier than ever, is less restrictive and also benefits borrowers, the housing market, and our economy.

You are eligible for the HARP 2 Program? If…

• Your mortgage is owned or guaranteed by Freddie Mac or Fannie Mae.
• Your mortgage was sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
• Your mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
• Your current loan-to-value (LTV) ratio must be greater than 80%.
• You are current on your mortgage at the time of the refinance.
• You have no late payment in the past six months and no more than one late payment in the past 12 months.

What are the benefits of shortening the terms of your mortgage?
Home owners who owe more on their mortgages than their homes are worth (under water mortgages) may be locked into their homes for years and have fewer financial options until they pay down the principal balance. A shorter term mortgage enables such home owners to pay down the amount they owe much faster than a traditional 30-year mortgage. Also, interest rates on shorter term mortgages are typically less than on 30-year mortgages. The lower interest rate may provide home owners the opportunity to shorten the term of their mortgages without much change in their monthly payments, and perhaps even a reduction in that payment.