LITTLE ROCK, Ark. (KTHV) - Economists say mortgage rates recently hit lower than they have been since the 1950s.
For many Arkansans with homes which have seen declining values, is there a government program available to use for refinancing?
The government is now hoping a product called HARP (Home Affordable Refinance Program) 2.0 is the answer.
Its predecessor, HARP 1.0 had property value limitations, making it difficult for some borrowers to utilize.
The government has revised the program to provide greater flexibility for homeowners.
"Let's say you owe a $125,000 on your current mortgage and you tried to refinance. In the past, your home had to appraise for at least a $100,000 to qualify for a HARP loan because there was a 125% loan limit," said Steven Plaisance, president and chief operating officer of Arvest Mortgage Company.
Plaisance said, in some instance, the appraisal requirements are no more.
Under HARP 1.0 , a homeowner could have no late payments within the last 12 months. With HARP 2.0, lenders now look at the last six months, allowing no more than one late payment in the last seven to 12 months.
"We see people refinancing for 1% difference in rate, a half of a percent or less. It all depends on your individual situation," said Plaisance.