We received a HARP loan in 2011, at 2% interest. The 2% rate is due to expire in 2016. Can we apply for a new HARP loan?

When we got the loan in 2011, we were under the impression that the loan was permanent, but apparently not. Starting in 2016, the interest rate increases 1% per year until it reaches the current rate. What concerns me is the possibility of losing our home. We are both now on fixed income, and no way can we afford the payments we had prior to the HARP loan. Can we get another HARP loan, or is it one shot?

Asked by Cyndi

1 Answer

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Answered by Ted Rood, Mortgage BrokerPRO+ in Maryland Heights, MO
No, HARP is a one time loan, so once you've done one, you can't do another. Also, HARP interest rates were essentially equal to "normal" conforming rates, so it's likely you did a HAMP (home affordable modification program), as that's the only way I am aware of to get a rate that low. You should look over your closing paperwork to see what will happen to your rate when the 5 years is up. Hope this helps! Ted | 02.19.15 @ 20:57
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 02:17
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Answered by

Ted Rood
Ted Rood, Mortgage BrokerPRO+ in Maryland Heights, MO