Can I Still Get a Quicken Loans HARP Refinance in 2023?

The Home Affordable Refinance Program (HARP) was an important lifeline for many homeowners after the 2008 financial crisis. This government program helped millions of borrowers who were underwater on their mortgages by allowing them to refinance into lower interest rates and better terms.

However, HARP is no longer available The program expired on December 31, 2018 after several extensions over the years.

If you currently have a HARP loan through Quicken Loans you may be wondering if you can do another HARP refinance in 2023. Unfortunately the answer is no. But don’t worry, you still have options if you want to refinance your mortgage.

In this article, we’ll explain why HARP ended, what replaced it, and what refinance options Quicken Loans borrowers have now that HARP is gone.

Why Did HARP End?

HARP was always designed to be a temporary program. It was first announced in 2009 to help the millions of homeowners who suddenly found themselves underwater on their mortgages during the housing crisis.

Over time, home values recovered and fewer borrowers needed HARP. The Federal Housing Finance Agency (FHFA) and the GSEs (Fannie Mae and Freddie Mac) determined the program had served its purpose and was no longer needed.

Here is a quick timeline of when HARP ended:

• HARP 1.0 ended on December 31, 2015
• HARP 2.0 ended on September 30, 2017
• The final HARP extension ended on December 31, 2018

So after December 31, 2018, HARP refinances were no longer available. Any HARP loans refinanced prior to that date can keep their HARP terms until the mortgage is paid off. But new HARP refis cannot be originated.

What Replaced HARP?

In 2019, Fannie Mae and Freddie Mac launched new refinance options to replace HARP.

Freddie Mac Enhanced Relief Refinance

For borrowers with Freddie Mac loans, the Enhanced Relief Refinance program (ERR) took the place of HARP. ERR has no expiration date, so it will remain available for future borrowers in need.

Like HARP, ERR allows underwater homeowners to refinance and take advantage of lower interest rates. To qualify for ERR, you must have an existing Freddie Mac mortgage originated before June 1, 2019.

There are some limitations though – borrowers who already refinanced with HARP cannot use ERR on the same property. And only Freddie Mac mortgages are eligible, not Fannie Mae.

Fannie Mae High LTV Refinance Option

Fannie Mae’s replacement for HARP is the High LTV Refinance Option. This allows refinancing for borrowers with Fannie Mae loans who are underwater or have very little equity.

The High LTV refi requires at least 12 months of consecutive, on-time mortgage payments. There are no maximum LTV or credit score requirements. You can reduce your interest rate, change loan terms, and lower your monthly payment.

Quicken Loans Refinance Options Post-HARP

So if you have an existing HARP loan through Quicken Loans, ERR and the High LTV refi are not options for you. But don’t worry, you still have plenty of refinance options:

1. Cash-out refinance

If you’ve rebuilt equity in your home, a cash-out refinance allows you to tap into your equity while refinancing into better loan terms. You can take cash out for home improvements, debt consolidation, education expenses, and more.

2. Rate and term refinance

Also known as a “no cash-out” refinance, this option lets you refinance your current mortgage into better terms while keeping the same loan amount. You can lower your interest rate, reduce your monthly payment, and potentially shorten your loan term.

3. FHA streamline refinance

For those with FHA loans, an FHA streamline refi lets you refinance easily with limited documentation. You can skip the home appraisal, though you’ll still need a credit check and income/employment verification.

4. VA IRRRL refinance

Veterans with VA loans can use the VA’s Interest Rate Reduction Refinancing Loan (IRRRL) to refinance with no appraisal and limited documentation. This option keeps all your original VA loan benefits intact.

5. USDA Streamlined Assist refinance

For borrowers with USDA loans, the Streamlined Assist program lets you refinance with minimal documents needed. No appraisal or credit check is required.

Should I Refinance My Quicken Loans HARP Mortgage?

If your HARP loan still has a relatively high interest rate, refinancing could save you thousands of dollars in interest and lower your monthly payments.

Run the numbers with Quicken Loans or another lender to see if you can get a rate that’s at least 0.75% lower than your current HARP rate. That big of a rate reduction could make refinancing worthwhile.

Refinancing also lets you switch from an adjustable rate to a fixed rate, which adds stability to your monthly payments. Or you may want to switch from a 30-year to 15-year term to pay off your mortgage faster.

Evaluate your budget to see if refinancing fits. While you’ll have higher payments with a 15-year mortgage, refinancing from an ARM to a fixed rate should provide payment relief.

Check current mortgage rates and crunch the numbers to determine if refinancing is right for you. While HARP is gone, you still have alternatives to save money on your home loan.