If your home has decreased in value, you have little equity in your home, or you owe more than your home is worth1, refinancing your home mortgage loan with HARP might be a great choice for you. Traditional refinance programs typically don't accept applicants with little to no equity in their home, but HARP does.
Here's how a HARP refinance typically saves money for homeowners:
  Jane's Current Situation 
Jane owes $200,000 on a house worth $160,000.
Interest rate = 6.5%
(assumed annual percentage rate [APR] of 6.73%2)
Monthly payment = $1,264
(LTV) ratio
= 125%
(The loan is worth 125% of the mortgage.)
Standard Refinance
She refinances into a 30-year fixed-rate mortgage.
  • Interest rate = 4.5%
    (APR 4.703%2)
  • Monthly payment = $1,013
  • Loan balance = $160,000 in 10 years
HARP Refinance
BUT, if she refinances into a 15-year mortgage with a HARP loan:
  • Interest rate = 3.75%
    (APR 4.099%2)
  • Monthly payment = $1,454 ($190 more than the current payment)
  • Loan balance is below $160,000 in just over 3.5 years