Home Affordable Refinance Program (HARP)

AAA

DEFINITION of 'Home Affordable Refinance Program (HARP)'

A mortgage-refinancing program offered by the Federal Housing Finance Agency to homeowners who own homes that are worth less than the outstanding balance on the loan. Homeowners eligible for Home Affordable Refinance Program (HARP) loans have mortgages owned or guaranteed by either Freddie Mac or Fannie Mae that were sold to either Fannie or Freddie before May 31, 2009.

INVESTOPEDIA EXPLAINS 'Home Affordable Refinance Program (HARP)'

The 2008 financial crisis affected real estate values across the United States and led to some homeowners being underwater or near-underwater on their loans.To help homeowners refinance and avoid foreclosure, the federal government launched HARP in 2009.

The loan is available to homeowners who are current on their mortgage payments, thus excluding those who are already in foreclosure or have walked away from their properties due to negative equity. Homeowners can refinance through their existing lender or through a different lender participating in HARP. The program is available for properties that are primary residences, as well as for second homes and investment properties.

RELATED TERMS
  1. Refinance

    1. When a business or person revises a payment schedule for repaying ...
  2. Fannie Mae - Federal National Mortgage ...

    A government-sponsored enterprise (GSE) that was created in 1938 ...
  3. Total Annual Loan Cost (TALC)

    The projected total cost that a reverse mortgage holder should ...
  4. Commercial Real Estate Loan

    definition of a commercial real estate loan
  5. Realtor Property Resource (RPR)

    A National Association of Realtors member benefit providing realtors ...
  6. Housing Choice Voucher Program

    The Housing Choice Voucher Program helps families with very low ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Economics

    How Fannie Mae And Freddie Mac Were Saved

    These mortgage giants had to be put under government conservatorship, driving home the gravity of the subprime crisis.
  2. Insurance

    Fannie Mae and Freddie Mac, Boon Or Boom?

    These two companies are crucial to the mortgage market, but are they ticking timebombs?
  3. Home & Auto

    The Home Appraisal: Your Key to a Successful Refinance

    When you refinance your mortgage, everything hinges on the appraisal. Here's what appraisers look at, how to make your home look as valuable as possible and ways to fight back if the valuation ...
  4. Home & Auto

    6 Questions To Ask Before You Refinance

    Refinancing your mortgage can be a quick way to save on payments, but it's not for everyone.
  5. Home & Auto

    When (And When Not) To Refinance Your Mortgage

    There are both good and bad reasons to refinance. Learn more about both here.
  6. Economics

    Wall Street History: Worldcom, Rigas And Freddie

    Financial scandals were all the rage in 2002, and this week in financial history saw two of them implode.
  7. Options & Futures

    Should You Refinance Your Mortgage When Interest Rates Drop?

    Refinancing is a great way for many homeowners to improve their financial situation - but beware of the downsides.
  8. Insurance

    Fannie Mae, Freddie Mac And The Credit Crisis Of 2008

    Is the U.S. Congress' failure to rein in these mortgage giants to blame for the financial fallout?
  9. Chart Advisor

    Freddie Mac

    For today's chart we've chosen to take a look at Freddie Mac (NYSE:FRE) because it is trading within a symmetrical triangle pattern. As you can see from the chart below, the stock has been experiencing ...
  10. Credit & Loans

    How To Become a Mortgage-Backed Securities Analyst

    Specializing in structured or derivative credit products like mortgage-backed securities requires education and prior experience in the mortgage field.

You May Also Like

Hot Definitions
  1. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  2. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  3. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets ...
Trading Center