The Federal Housing Finance Agency announced today some changes to the Home Affordable Refinance Program (HARP). Basically, the idea is to make it possible for more people with loans backed by Freddie Mac and Fannie Mae to refinance to take advantage of low interest rates. The program has been limited to those who owed up to 125% of their home’s value, but they’re removing that limit so homeowners who are substantially underwater will be able to refi into lower payments, hopefully letting more people stay in their homes.
Of course if your loan isn’t backed by Freddie Mac or Fannie Mae, if you have a jumbo loan for example, this won’t be such exciting news.
You can read the official press release here.