President Obama unveiled changes to the Home Affordable Refinance Program in a campaign stop in Nevada yesterday, a state which has been hit hard by the housing crisis.
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HARP, which was launched in 2009, was designed to help those who are “underwater” and owe more than their houses are worth.
It has reached less than one-tenth of the 5 million borrowers it was designed to help. Here’s a quick breakdown of what you need to know about the changes.
What was announced? The enhancements will allow some homeowners who are not currently eligible to refinance to do so under HARP. The changes cut fees for borrowers who want to refinance into short-term mortgages and some other borrowers. They also eliminate a cap that prevented “underwater” borrowers who owe more than 125 percent of what their property is worth from accessing the program.