Government announces updated refinancing plan for underwater home owners
The federal government this week released additional details regarding it’s revamped Home Affordable Refinance Program, which is looking to allow more Knoxville home owners to refinance their current mortgage to take advantage of the current low rates. The program aims to assist those Knoxville home owners that are current on their mortgage but may owe more on their Knoxville homes than they are currently worth.
Here are details concerning the changes happening to HARP:
- Knoxville borrowers must be current on their loan, having no delinquencies within the last six months. Borrowers must have 20 percent or less of equity in their Knoxville homes in order to participate.
- The borrowers current loan must be owned or guaranteed by Fannie Mae or Freddie Mac before May 31, 2009. Knoxville home owners can check if Fannie Mae or Freddie Mac backs their mortgage by visiting www.freddiemac.com/mymortgage or wwww.fanniemae.com/loanlookup.
- This updated HARP program will begin Dec. 1, 2011, and run until Dec. 31, 2013. Lender participation in the program is voluntary.