The Home Affordable Refinance Program, or HARP, enables homeowners who can't qualify for regular financing to make their mortgages easier to pay, notes the Making Home Affordable website. This program can lower the mortgage's interest rate, decrease closing costs and result in a lower monthly payment.
Homeowners who refinance using HARP can also benefit from faster equity increases and a stable interest rate. Qualifying for the program requires having a Freddie Mac or Fannie Mae loan, a stable payment history and no previous refinancing under the program, notes Making Home Affordable. Furthermore, there needs to be an 80 percent or higher loan-to-value ratio for the home, so the home may not need to have any equity at all to qualify, states the HARP website.