What is HARP (Home Affordable Refinance Program) 2.0?
Home Affordable Refinance Program, aka HARP 2.0, is a government program to help the millions of underwater borrowers with a an opportunity to refinance to lower current rates to help save hundreds of dollars per month. HARP 1 was announced in March 2009, allowing borrowers up to 105 or 125% of amount owed to current market value. But, less than 900,000 home owners have taken advantage of this program. So President Obama announced an 2.0 version of the HARP program, with the hope of reaching more underwater borrowers. The HARP 2.0 program essentially removed the 125% cap for the amount being underwater to unlimited. The program took effect in Dec. 1, 2011 with only bank servicers allowing you to refinance until Fannie Mae can update there software to allow through non-servicing lenders to originate these loans.