The Federal Housing Finance Agency (FHFA) has reported that the total number of loans refinanced through the Home Affordable Refinance Program (HARP) in the second quarter was nearly the same as the number of HARP refinances through the first quarter. FHFA's second quarter Refinance Report indicates that 31,561 HARP refinances were completed between April and June, down slightly from the 31,648 HARP refinances completed from January through March.
More than 3.3 million borrowers have refinanced their homes through HARP since the program began in 2009, and FHFA estimates that, as of March, more than 578,000 borrowers nationwide still have a financial incentive to refinance through the program. The top five states with the highest numbers of "in-the-money" borrowers that remain eligible for a HARP refinance are Florida, Ohio, Illinois, Michigan and Georgia.
Borrowers are considered "in-the-money" if they meet the basic HARP eligibility requirements, have a remaining mortgage balance of $50,000 or more, have a remaining term of greater than 10 years, and an interest rate at least 1.5 percent higher than current market rates. Nationwide, these borrowers could save, on average, as much as $200 per month on their mortgage payments, or $2,400 per year. See the U.S. map showing the number of HARP-eligible borrowers by Metropolitan Statistical Area, county and zip code.
Also in the second quarter Refinance Report:
►Through the first half of 2015, 29 percent of all HARP refinances for underwater borrowers (those with a loan-to-value ratio greater than 105 percent) resulted in 15- and 20-year mortgages, which helps borrowers build equity faster than traditional 30-year mortgages.
►The top five states with the highest number of total HARP refinances completed thus far in 2015 are Florida, California, Illinois, Michigan and Georgia.
►The two states with the highest level of HARP refinances as a percentage of total refinances so far in 2015 are Florida and Georgia.
