A part of the federal Making Home Affordable program, the Home Affordable Refinance Program, or HARP, is aimed at helping homeowners to avoid foreclosure and save their homes. The program is available as a refinancing option under the government’s initiative. Loans that are current and that are either owned or guaranteed by Fannie Mae or Freddie Mac may be eligible for HARP even if the homes have dropped in value. HARP may allow borrowers to secure mortgages with reduced interest rates, lower payments, fixed-rate interest rates or shorter mortgage terms.