How might HARP benefit me?

The HARP Program helps underwater borrowers to refinance their loan and take advantage of lower mortgage rates, or move to a more predictable loan program, such as from an adjustable rate loan to a fixed rate loan.

The primary benefit of HARP is to help homeowners by lowering their rates. This allows a borrower to enjoy a lower monthly payment, but also saves the borrower interest payments over the life of the loan. The lower payment can also help put the borrower in a position to pay down their loan balance faster.

While the HARP Program is not a principal reduction, the effect is much the same - in terms of monthly payment.

For example a 30 year fixed rate loan amount of $350,000 has a payment of $1,987.
In order to lower a homeowners payment by $400/month – there are two ways to approach it:
1) lower the balance from $350,000 to $275,000 (at 5.5 %), or
2) Keep the balance at $350,000 and lower the interest rate to 3.5%. (AS WITH THE HARP PROGRAM)

Both offer the same monthly benefit to the borrower. And over the life of the loan, both would cost the borrower roughly the same of money out of pocket.