Home Affordable Refinance Program
125 loans have changed their face in recent years. The 125 home equity loan that enabled homeowners to consolidate credit card debt and to finance home improvements has vanished because second mortgage loan defaults have risen so dramatically in recent years.
125 loans are available with the Home Affordable Refinance Program, but borrowers must have a mortgage lien owned by Freddie Mac or Fannie Mae that does not exceed $417,000. It’s a rate and term refinance, no cash out and no combining first and second mortgages.
This mortgage refinancing program is designed for homeowners who have good credit but who are unable to refinance because of a lack of home equity. The HARP product is an Obama mortgage relief option for borrowers who owe more than their house is worth.
