Changes in the HARP program allows more homeowners to refinance

Can I Refinance my Underwater Mortgage?

Great news for South of the River Homeowners, it may be possible to lower your interest rate, even if your mortgage is underwater! This is a huge change in policy and procedure.  Previously under the HARP guidelines, the amount of mortgage you could refinance was capped at 125% of the Appraised Value of your home.

Refinance your underwater mortgage home

Refinance your home without an appraisal under new HARP guidelines.

The big change is, appraisals will no longer be required.  You can re-finance your mortgage without worrying about the value of your home. Wow!

The trade magazine has an article about this change and the CEO of the Minnesota Association of Realtors brought a Wall Street Journal Article by Nick Timiraos to our attention.

Who’s eligible?
• Home owners with loans backed by Fannie Mae or Freddie Mac can participate. (Home owners can visit: or to determine if their mortgage is owned by either).
• Home owners must be current on their mortgage.

This program allows homeowners who are current on their mortgage to take advantage of today’s lower interest rates, even if their homes have lost significant value.  The money saved from lowered house payments should help Homeowners avoid the need to do a Short Sale or lose their home to Foreclosure.  Traditional homesellers will benefit because they won’t have to compete with as many Short Sales and Foreclosures on the Market.  Today, there are 665 active Foreclosure and Short Sale Homes on the market in Savage, Prior Lake, Lakeville, Farmington, Apple Valley, Eagan, Burnsville and Rosemount combined.

There may be some economic stimulus as homeowners purchase more goods and services with the extra money saved from refinancing.

Do you need to know if you should refinance? There is a formula used by mortgage companies which helps guide your decision.  You can call me 612-889-6496 or use the Ask a Question form to request a personal evaluation of your situation.  We are always happy to hear from you and will put you in touch with the best industry professionals.

Read what Sheryl’s clients say about working with Sheryl and the Selling South of the River Team!

Click here to contact Sheryl if you would like her to “Sell my Farmington Home!”


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