The Home Affordable Refinance Program (HARP) is a United States federal government program designed to aid property owners that are having difficulties with their home mortgages. Prior to refinancing via HARP, you ought to think about both the advantages and the downsides of this lending program. Here are the pros and cons of the HARP program.
1. Pro: Lower Monthly Payments
One of the main reasons that customers seek HARP refinancing is because they will typically be given lower monthly payments. The rates and terms of HARP refinancing are determined by borrowers’ credit scores and payment histories. Debtors with good credit histories will receive reduced interest rates on their new HARP loans. This causes them to have lower payments compared to those on their existing home mortgage. Requesting longer repayment periods further decreases monthly payment amounts.