HARP is designed specifically to help borrowers who may be ineligible for traditional refinancing due to loss of home value or because they have little (or no) equity. Like other refinancing options, with HARP you receive a completely new mortgage with new terms, interest rates and monthly payments. The new loan completely replaces your current mortgage and may lower your payment, which could help improve your monthly financial situation.
HARP may be an option if:
You are current on your mortgage payments (and haven’t been late in the last 6 months)
Your home value has decreased
Your first mortgage exceeds the current market value of the home
Your loan is owned by Fannie Mae or Freddie Mac