Is a Home Affordable Refinance right for me?
The goal of the 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.
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 MacHow 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.
Your existing loan must be dated on or before May 31, 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
If you can't afford your monthly mortgage payments due to a financial hardship, you may qualify for a loan modification.
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 Loan Estimate that spells out the settlement costs associated with the loan
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.
- 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 Loan Estimate) when compared to your current situation.
When you apply for a refinance loan at Bank of America, you'll receive a Loan Estimate containing your new interest rate, mortgage payment and the amount you'll pay over the life of the loan.
Together with your mortgage loan officer, you can compare the Loan Estimate 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.
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 60 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
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.