With the recent enhancement to the Home Affordable Refinance Program, known as Harp 2.0, it is expected that many borrowers will be able to take advantage of this opportunity to lower their monthly mortgage payments. While the principal amount of the mortgage is not reduced, refinancing with the current mortgage interest rates that are available for Harp 2.0 mortgages is a way to reward those who have not fallen behind or defaulted on their mortgages despite any negative circumstances that have occurred over the past few years.

Harp 2.0 is basically a refinance program for borrowers who are underwater on a mortgage that is held by Fannie Mae or Freddie Mac and secured prior to June 1, 2009. The mortgage can be for a borrower's primary residence, second home or even investment property. This program gives those individuals who are up to date on their mortgage payments the opportunity to refinance at the current mortgage interest rates without the need of an appraisal. Minimum credit scores are also not required for this program. Mortgage rates for the Harp 2.0 program are not set by the government, but are the same as those available for any regular conforming refinance. While loan level pricing adjustments are used, they are capped at 0.75 points for the Harp 2.0 program. For those choosing the 15 year fixed rate mortgage refinance, there are no loan level price adjustments. Since the Harp 2.0 is just another type of refinance program, borrowers will find that mortgage rates being offered may differ from lender to lender. It is not necessary that borrowers use their original lender for the Harp 2.0 which makes it in their best interest to research the current mortgage rates being offered by reputable and knowledgeable lenders.

There are millions of borrowers who are eligible to refinance to current mortgage interest rates through the Harp 2.0 mortgage program. Even those who need to bring their mortgage payments up to date have until the end of 2013 to apply for this refinancing. Over this period, millions of dollars will be saved when borrowers switch to lower mortgage rates without facing the normal restrictions that are usually part of a refinance.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1% point origination fee.

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