Freddie Mac became a household name that people would hear almost daily as the real estate market experienced a downturn in 2007 and 2008. Freddie Mac is the nickname for the Federal Home Loan Mortgage Corporation, one of two major institutes that own the majority of loans across the country. The purpose of this institution is to keep funds liquid for the real estate that they have invested in. Freddie Mac plays a large part in the mortgage industry and is one of two institutes (the other being Fannie Mae) that you must qualify through in order to have a HARP (Home Affordable Refinance Program) refinance.
Guaranteeing Ample Funds
Since Freddie Mac is an investment bureau, they buy mortgages from lenders and sell them to investors as packaged bundles to lending institutes and other investing bodies. Freddie Mac was created in the 1970s to enhance and compete with the already popular and growing Fannie Mae bureau. The government uses these two institutes to own and guarantee millions of loans for qualified borrowers.
The Improving Housing Market
HARP was jointly created for use with both Freddie Mac and Fannie Mae as a way to help homeowners who were in distress from the economic recession. People who found their home values plummeting and lost their jobs were finding it increasingly difficult to meet their monthly mortgage obligations. HARP came into play to help people in these situations. As the market continues to recover, getting a HARP loan can be a great method to refinance from a bad and negative equity situation into one where you can finally begin to grow equity in your home.
How to Know if you Qualify for HARP
To qualify for HARP, you must Most borrowers are unaware who ultimately owns their loan, since they are rarely told by the lender who the loan is sold to. You can check to see if Freddie Mac owns your loan by visiting the Freddie Mac site. Since most lenders sell their loans to either Fannie Mae or Freddie Mac, there’s a good chance you will qualify for HARP.
Talk to Your Lender
Lenders are always a motivated party when it comes to you getting any type of loan. Their experts will be able to help you navigate HARP and the qualifications you’ll need to meet. They can help you come to a solution where you’ll have a manageable monthly payment as well as a repayment term which fits your needs.
As long as you are current on your monthly payments, it is worth looking into HARP to see if you can better your current mortgage situation through Freddie Mac and the Home Affordable Refinance Program.
See if you qualify for a HARP loan, fill out our quick 1-minute form to have a Mortgage Advisor contact you.