Refinance program extended for ‘underwater’ borrowers

The Home Affordable Refinance Program – a government refinancing program for underwater homeowners – will be expanded for another two years, the Federal Housing Finance Agency announced.

HARP was originally set to expire December. 31, 2013, but will now be extended to the end of 2015.

“More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,” said Edward Demarco, FHFA acting director.

Homeowners eligible to apply for refinancing under HARP must have a Fannie Mae- or Freddie Mac-backed mortgage that was guaranteed on or before May 31, 2009, must be current on their loan, and must have a current loan-to-value ratio more than 80 percent.