In order to improve the economic condition of the country, US regime introduced a new home loan relief program named HARP 2.0 (Home Affordable Refinance Program 2.0) in the year 2012. The key objective of this system was to offer relief to property owners in distress. The original program, launched in 2009, had considerably tougher requirements due to which a rather small number of people were able to use it to their benefit. Up to now countless house owners across America have already been accepted into the HARP 2.0 program and the amount is growing continuously.
If you are a property owner and you want to have your financial loan refinanced then this post has been written just for you. In this article you will find out exactly what this system is and how is it providing mortgage relief 2013. You'll also find some tips on how to improve your likelihood of getting accepted.
According to financial experts the thing that caused the latest recession in America was that banks foreclosed too many homes without giving any relief to homeowners. Although this resulted in certain short-term gains for mortgage servicers, it also brought about the fall of the housing industry. Now the government is trying to help the economy get back on its feet by dealing with the root problem. The answer is to limit the number of property foreclosures and to make it possible for people, irrespective of how unfavorable their position is, to qualify for refinancing under the HARP 2.0 program.
The results of this approach have been much better than expected. The US economy has started exhibiting distinct signs of growth. The housing market is becoming better with the passage of time. Though loan rates are still very low when compared to prior years, it's likely that rates are going to increase in the approaching weeks.
Another advantage of the new version of HARP is that it permits homeowners to work with any financial institution, besides their existing servicer. In other words, under the HARP 2.0 program, property owners have more freedom than before. They can look around and find a more advantageous servicer whenever they want to. Furthermore, it gives lenders some much needed protection against buy-back demands from investors. Prior to the launch of HARP 2.0 this was a big issue.
Listed below are some valuable suggestions that every home owner must follow in 2013:
- Re-finance your house loan - If you haven't refinanced recently then now is the perfect time to take action. The mortgage rates are still incredibly comptitive and re-financing may help you lower your monthly payments.
- Boost your credit score - Since loan rates are low, finance institutions are taking ratings very seriously right now. Therefore you must try to increase your rating as much as possible. If you don't it will not be possible for you to get a good loan deal.
by Ted Simpson
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