Finding which refinance program works best for you

Although mortgage rates are the lowest they have been in over a year, the number of HARP loans being closed has dropped. According to the Mortgage Reports, in July there were only 16,000 HARP loans closed in the country, the least since the program began.

The cause of the drop in HARP loan applications is home values have been on the rise. In order to qualify for the Home Affordable Refinance Program, a home must have less than 20 percent equity, and the loan must have been taken out before May 31, 2009. In the early days of the program, many home loans would have qualified for the program, but that is no longer the case.

If you qualify for a HARP loan, now is when you should be taking advantage of the program, as HARP 2.0 now allows an unlimited loan to value ratio. The program is set to end on December 31, 2015, so homeowners still have some time, though mortgage rates are not guaranteed to stay at their current rates for much longer.

If you still want to take advantage of today’s low rates and do not qualify for HARP, there are still many refinance options available. BestRateUSA refinance programs include FHA and VA refinance mortgages, which are insured by the federal government and the Department of Veterans Affairs, respectively. These programs have more relaxed credit standards to help out homeowners.

Conventional refinance mortgages are also an option, which are great for those who want to lower their interest rate and monthly payments, or want to decrease their loan term to pay off their home sooner. Lowering your interest rate only a couple points could save tens of thousands of dollars in interest payments over the lifetime of your loan.