Strong HARP Refinance Volumes

By Sari R. Updated on 4/10/2013

In January, around 470,000 Fannie Mae and Freddie Mac mortgages were refinanced.  Out of all these mortgages, around 97,600 were done through the Home Affordable Refinance Program (HARP), which indicates that volumes are still high, even through the year’s first month.

According to the Federal Housing Finance Agency, around 2.2 million loans have been refinanced through the Home Affordable Refinance Program since the program’s creation in 2009.  Since HARP’s creation through January 2013, HARP refinance loans accounted for 215,580 investment properties, 72,396 second homes and 1.97 million primary residences.

Borrowers with loan-to-values that are greater than 105% made up of 47% of the total HARP refinance volume.  This is exemplary of the greater trend of underwater borrowers using HARP refinances to refinance their loan amount.  Overall, 20% of the HARP Refinance loans had an LTV that was greater than 125%. 

 According to the FHFA, HARP also accounts for a large amount of regional refinance volumes.  For example, refinances in the month of January in Nevada were 66% HARP refinances.  In January, 56% of Florida’s refinances were HARP refinances.

The FHFA also concluded that 18% of HARP refinances in January were for 15 and 20-year mortgages.  These mortgages build equity faster than 30-year mortgages, which might be why they were a popular choice.