The Federal Housing Finance Agency (FHFA) today reported that Fannie Mae and Freddie Mac completed 299,466 refinances in the second quarter of 2018, compared with 356,002 in the first quarter. FHFA’s second quarter Refinance Report also shows that 2,973 loans were refinanced through the Home Affordable Refinance Program (HARP), bringing the total number of HARP refinances to 3,491,140 since inception of the program in 2009.
Although HARP is scheduled to expire on December 31, 2018, according to new data released today, 49,094 borrowers could still benefit financially from a HARP refinance. These borrowers meet the basic HARP eligibility requirements and have a remaining balance of $50,000 or more on their mortgage, a remaining term on their loan of greater than 10 years, and a mortgage interest rate that is at least 1.5 percent higher than current market rates. These borrowers could save an average of $2,290 annually by refinancing their mortgage through HARP. See the new, updated interactive U.S. map showing the number of HARP-eligible borrowers by state, Metropolitan Statistical Area, county and zip code as of March 31, 2018.
Also in the Refinance Report:
- Through the second quarter of 2018, 32 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages.
- Ten states accounted for more than 70 percent of borrowers who remain eligible for HARP and have a financial incentive to refinance as of March 31, 2018: Illinois, New Jersey, Ohio, Florida, Michigan, Pennsylvania, Maryland, Alabama, Georgia and New York.
- Borrowers who refinanced through HARP had a lower delinquency rate compared with borrowers eligible for HARP who did not refinance through the program.