Home Affordable Refinance Program (HARP)

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.



comments powered by Disqus
Hot Definitions
  1. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  2. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  3. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  4. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  5. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  6. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
Trading Center