What Is a HARP Loan?

The Home Affordable Refinancing Program (HARP) is a defunct program that provided government-backed loans to allow homeowners to refinance and lower their mortgage payments, decreasing costs to borrowers both month-to-month and over the entire duration of the loan.

HARP loans were designed for borrowers who kept current on their required mortgage payments but who had built little or no home equity. These borrowers typically could only pay interest payments and not the principal. The HARP loan allowed borrowers to refinance and begin building equity.

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HARP officially ended on December 31, 2018.