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Home Affordable Refinance

Government home loan refinancing program. As part of the federal government's Making Home Affordable program, the Home Affordable Refinance Program was developed to help if you don't qualify for a traditional refinance and are current on your mortgage payments.

Is a Home Affordable Refinance right for me?

Program goal

The goal of the government’s Home Affordable Refinance Program is to help make monthly mortgage payments more affordable for customers who may not have sufficient equity in their home to qualify for traditional refinancing.

Eligibility

You may be eligible to refinance your home loan under the Home Affordable Refinance Program (HARP), if:

Your home loan is owned by Fannie Mae or Freddie Mac

How do I know?

To find out if your loan is owned by Fannie Mae or Freddie Mac, simply call the toll-free numbers below or use their online lookup tools.

Fannie Mae:

1.800.7FANNIE (8 a.m. to 8 p.m. ET) www.fanniemae.com/loanlookup Opens a new window

Freddie Mac:

1.800.FREDDIE (8 a.m. to 8 p.m. ET) www.freddiemac.com/mymortgage Opens a new window

Your loan was sold to Fannie Mae or Freddie Mac on or before June 1, 2009

You're current on your mortgage payments

within the past twelve months, you've been more than 30 days late with your payment only once

within the six months immediately before you apply for your refinance, you've not been 30 days or more late with your payment

Other options may still be available. If you can't afford your monthly mortgage payments due to a financial hardship, you may qualify for a loan modification under the federal government's Home Affordable Modification Program.

Get more details on the Home Affordable Refinance Program.

Now that I'm in the process, what's next?

Call us to request a Home Affordable Refinance.

Before you call, to save time, gather some financial information that we'll be asking you for. Please have handy the following for everyone listed on your home loan:

  • Pay stubs or, if self-employed, quarterly or year-to-date profit/loss statement
  • Bank statements for all checking and savings accounts
  • Tax return

During the call, we'll discuss your situation, check your eligibility and help you complete an application over the phone.

I've submitted my financial information.

After the call, we'll send you a welcome package containing key facts about refinancing and the costs involved.

  • A Good Faith Estimate document that spells out the settlement costs associated with the loan
  • A Truth in Lending Disclosure Statement

You may also receive a one-page Clarity Commitment1 summary that clearly shows key loan terms, is written in plain language and is designed to help you understand the loan you are applying for.

Important: Once you receive your welcome package, you'll need to compare the proposed loan terms to your current loan. If the proposed payments aren't an improvement over what you pay now, and you're not refinancing to lock in a fixed rate, refinancing may not be right for you.

If you qualify, we'll call you to let you know that you've received conditional approval. We may ask you to send us additional information if it's needed. To avoid any delays, please provide any additional information we request as soon as possible.

We'll also:

  • Pull a credit report for all applicants
  • Order a home appraisal to determine your home's market value

The program's goal is to help make monthly mortgage payments more affordable. You might want to consider the possible advantages of refinancing from an adjustable-rate loan to a fixed-rate loan, or eliminating higher risk loan terms such as interest-only payments or balloon payments. This may help provide you with more long term stability. It's important to know that even though refinancing may lower your monthly payment, it resets the terms of your loan and therefore may increase the total number of monthly payments and interest charges you pay over the life of your loan (shown on the Truth in Lending Disclosure Statement) when compared to your current situation.

When you apply for a refinance loan at Bank of America, you'll receive a Truth in Lending Disclosure Statement containing your new interest rate, mortgage payment and the amount you'll pay over the life of the loan. You may also receive our Clarity Commitment® document, a one-page summary1 of key loan terms written in plain language, which is designed to help you better understand what you're getting.

Together with your mortgage loan officer, you can compare the Truth in Lending Disclosure Statement and Clarity Commitment® to your current loan. If the proposed new payment isn't an improvement, the Home Affordable Refinance Program may not be right for you and you are under no obligation to continue.

Other options may still be available. If you can't afford your monthly mortgage payments due to a financial hardship, you may qualify for a loan modification under the federal government's Home Affordable Modification Program.

I'm awaiting final approval.

We'll begin reviewing and verifying your information. We'll need to:

  • Review the property appraisal with your credit history and overall financial situation to make a decision whether to approve your loan request.

The review process may take up to 90 calendar days, depending upon whether you have a home equity loan or line of credit with us or with another lender. We'll contact you regularly during this time to update you on your status. You can also check the status of your application online at any time.

If approved, you’ll receive a phone call from us to schedule the signing of the new loan papers, otherwise known as a closing.

Important: Be sure to continue making your normal mortgage payments until you sign the loan documents and your refinance takes effect.

I've been approved for a Home Affordable Refinance.

If your loan is approved, you'll go through a closing process similar to when you first purchased your home.

At the closing, you and any co-borrowers will need to:

  • Sign a full set of loan documents
  • Pay for closing costs, unless some or all of the costs are financed into the loan amount

 

1The summary is provided as a convenience, does not serve as a substitute for a borrower's actual loan documents, and is not a commitment to lend. Borrowers should become fully informed by reviewing all of the loan and disclosure documentation provided.

Refinancing may increase the total number of monthly payments and/or the total amount paid when compared to your current situation.

Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.