The Federal Housing Finance Agency reports that Fannie Mae and Freddie Mac have completed 253,135 refinances in the third quarter of 2018, compared with 299,460 in the second quarter.
FHFA's third quarter Refinance Report also shows that 1,865 loans were refinanced through the Home Affordable Refinance Program, bringing the total number of HARP refinances to 3,493,005 since inception of the program in 2009.
Although HARP is scheduled to expire at the end of December, 38,818 borrowers could still benefit financially from a HARP refinance, according to data released today. These borrowers meet the basic HARP eligibility requirements and have a remaining balance of $50,000 or more on their mortgage. Also, they have a remaining term on their loan of greater than 10 years, and a mortgage interest rate that is at least 1.5 percent higher than current market rates. They could save an average of $2,290 each year through a HARP refinance.
In addition, the report covered the following:
- Through the third quarter of 2018, 33 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages.
- One U.S. territory and nine states account for more than 70 percent of borrowers who remain eligible for HARP and have a financial incentive to refinance as of June 30, 2018: Puerto Rico, Illinois, New Jersey, Florida, Michigan, Ohio, Pennsylvania, Maryland, Alabama and Georgia.
- Borrowers who refinanced through HARP had a lower delinquency rate compared with borrowers eligible for HARP who did not refinance through the program.
