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A relatively unknown type of loan — the HARP mortgage — has been structured to help homeowners who are having a problem making their payments. Some are at the brink of foreclosure and losing their homes.

Home Affordable Refinance Program (HARP) loans are designed to help a specific type of homeowner — those who have diligently kept their mortgage payments current and up-to-date, but need a more affordable refinance loan. They have not been able to attain one because the value of their property has dropped, wiping out needed equity.

A HARP mortgage, available through June of next year, allows such a homeowner to refinance his or her current mortgage with a low-interest loan, even though the owner has minimal or no equity in the home. The program is intended to help families stay in their homes, supporting a continuing high proportion of Americans who own their homes.

In most cases, lenders require at least 20 percent equity in a property for a refinance mortgage. A HARP loan can be up to 125 percent of the home’s current market value. And it can be processed quicker, smoother and more cost-effectively than other refinance loans for those who qualify.

One hitch is that the mortgage must be owned by Fannie Mae or Freddie Mac, the government-sponsored enterprises that own most home mortgages.

Check with your lender to determine your mortgage’s current owner.

Also, the owner’s monthly payments must be current — no late payments of 30 days or more over the past 12 months. And the new mortgage loan must improve the borrower’s financial situation.

A HARP loan can potentially help nearly 5 million homeowners transition from an unaffordable mortgage to an affordable one. But they need to know such a loan is available. Check with your lender for more details.

A good investment

Despite mortgage payment problems experienced by many families, most consider their investment in a home to be very wise and prudent. In fact, 92 percent of homeowners responding to a recent survey said their home was a very good investment.

The survey, conducted by Princeton Survey Research Associates (commissioned by Bankrate), was primarily launched to determine the attitudes of Americans about finances and family life. It showed that about nine in 10 respondents believe a home is a good investment for the future.

But about 48 percent worry about losing their home or being unable to afford the home they live in.

It also showed that many people are split about whether stocks and mutual funds are good long-term investments. About four out of 10 Americans don’t believe the stock market offers the best chance for long-term returns, while another 12 percent don’t know how they feel about stocks.

In another study, it was shown that the average return on residential real estate over the past three decades was 5.92 percent.

To find out more about national real estate columnist Jim Woodard, visit the Creators Syndicate Web site at www.creators.com.