HARP 2.0 is now extended through December of 2013.
In order to be eligible, loans must have been purchased by Fannie Mae or Freddie Mac after May 31, 2009 and have loan-to-value ratios of at least 80%.
The 125% LTV cap on fixed rate mortgages has been eliminated (there is still an LTV cap of 105% on adjustable rate mortgages).
To qualify, borrowers must be current on their mortgage for the last six months, and have no more than one late payment over the past year.
It is possible that NO NEW APPRAISAL will be needed to qualify.
In addition to helping more than a million homeowners who are currently underwater on their mortgages, HARP 2.0 could cause an increase in mortgage originations of between $200-300 billion in 2012-2013. On average, somebody refinancing with HARP 2.0 could save more than $2,000 in interest payments on their home loan in the first twelve months after refinancing.
