Underwater Homeowners Continue To Refi With HARP
Even with interest rates resembling a roller-coaster ride, homeowners continue to take advantage of the extended HARP program. In April alone, just over 106,900 Fannie Mae and Freddie Mac mortgages refinanced through the Home Affordable Refinance Program (HARP) in April, which represents 23% of the total refinance volume, according to the Federal Housing Finance Agency.
Just to show that the underwater home syndrome still has not completely dried up, 20% of the loans that refinanced through HARP in April had loan-to-value ratios greater than 125%. Of course that number would be lower here in the San Francisco Bay Area.
Even with recent bumps in interest rates, the relatively low rates remain a key reason why for the higher refi volumes, and more specifically for HARP refi activity remaining high.
Since the inception of HARP, 2.57 million homeowners have refinanced through the program.
California Leads The Nations In HARP Loans
The breakdown for year-to-date figures through April saw borrowers with LTV ratios greater than 105% accounting for 44% of HARP loans, while underwater borrowers comprised 17% of the HARP refinances. The lower underwater percentage suggests that homes have shot up in value leaving less California and Bay Area homeowners underwater.
It’s no surprise that California has the highest number of HARP loans since the inception of the program through April with 357,751 followed by Florida (225,447).
Finally, since the program’s inception, roughly 2.2 million loans refinanced through HARP were for primary residences, 82,123 were for second homes and 272,530 were for investment properties.
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