Top 10 HARP Refinance States: FHFA 2013 Quarter Three Report
The Federal Housing Finance Agency (FHFA) released its 2013 refinance report update for the third quarter stating that the volume of HARP Refinances have decreased since the last report. While there is a low in refinances for HARP, mortgage rates is on the rise. However, there are 10 states in particular with the most HARP Refinances (as of October 2013), these states are definitely taking advantage of the program’s benefits. With the help of the government-backed refinance plan, responsible homeowners now have the opportunity to get their current mortgages down to an affordable monthly payment.
The following states are with the most HARP Refinances as of October 2013 are:
1. Florida = 5,202 (274,158 since inception)
2. California = 4,645 (408,016 since inception)
3. Michigan = 2,937 (199,261 since inception)
4. Illinois = 2,790 (194,446 since inception)
5. Georgia = 2,721 (145,215 since inception)
6. Ohio = 2,097 (109,122 since inception)
7. Arizona = 1,869 (145,673 since inception)
8. Texas = 1,514 (145,673 since inception)
9. Virginia = 1,369 (87,180 since inception)
10. Maryland = 1,356 (84,316 since inception)
Year-to-date through October 2013, 56 percent of the total refinances were HARP loans in Nevada and 49 percent in Florida, these numbers more than doubled a 22 percent of total refinances throughout the nation over the same period.
The HARP Refinance Program (HARP) is definitely an effective program for many underwater homeowners today. Just in October 2013, a total of 46,387 refinances were completed through HARP completing the total (since inception) of 2,989,204.
The number of HARP Refinance borrowers with a Loan-to-Value (LTV) ratio of 105 percent has certainly increased throughout the years as a nation:
Since Inception – December 2011 = 9 percent
Entire year of 2012 = 44 percent
Year to October 2013 = 41 percent
19 percent of HARP loans for underwater homeowners with a LTV greater than 105 percent were mostly for short term 15 and 20-year mortgages, which in fact builds equity a lot quicker than the traditional 30-year mortgage. With prior notice of a campaign to better promote the HARP Refinance Plan and the help of the program’s original deadline extended until December 2015, HARP will continue to help rebuild positive equity back into these states.
The FHFA report also shows an indication of borrowers who refinanced through HARP to have a lower delinquency rate when compared to borrowers who are eligible for HARP but chose to refinance with a different program.
The HARP Refinance plan was established by the Obama Administration and put into place by the Federal Housing Finance Agency (FHFA) with the intentions of helping underwater homeowners refinance their current mortgages to a lower monthly payment preventing an increase in delinquency and foreclosures in the United States. Since the program’s first debut in 2009, the Home Affordable Refinance Program (HARP) has helped more than 34 million homeowners switch to a better and/or shorter loan term today.
To Read More About HARP Eligibility CLICK HERE
