You've probably heard about HARP, or the Homeowner Affordable Refinance Program, a federal initiative designed to provide underwater mortgage help to homeowners with Fannie Mae or Freddie Mac loans refinance with lower payments and more stable (or fixed) terms. But what you may not know is that last year, President Obama announced some pretty significant changes to the HARP program. We're calling it HARP 2.0.

So what does HARP 2.0 mean for you? The big news is expanded eligibility, since the loan-to-value (LTV) cap has been eliminated. In other words, it doesn't matter how underwater you are on your home. Even if you own $200,000 on a house that's been valued at $125,000, you may still be able to qualify for a refinance under HARP.

Here are some key points to keep in mind if you're interested in refinancing through HARP (and you can learn more about what HARP 2.0 really means – and some of its hidden dangers – in our mortgage refinance plan report):

• You probably won't need an appraisal. If you meet the other qualification criteria, you could be a candidate for a HARP refinance under the new rules.
• If you pursue a mortgage refinance with your current lender, you won't have to provide additional documentation, and you won't be subject to a credit check.
• If you refinance through a new lender, you'll be required meet all standard qualifications (with the exception of the appraisal).
• Your loan must fall under the current conforming loan limits of $417,000 ($625,500 in "high cost" areas).
• You have until December 13, 2013 to get your mortgage refinance under HARP 2.0.

HARP 2.0 could be a great opportunity for many underwater homeowners. But there are a few things you'll need to watch out for if you want to pursue underwater mortgage help through HARP:

• Refinancing under HARP 2.0 could turn a non-recourse loan into a recourse loan. In simple terms, if you default on a recourse loan, the bank can take the house andcome after your other assets. That's not the case with a non-recourse loan. Before you refinance make sure you scrutinize your new mortgage agreement – with the help of a real estate attorney.
• If you refinance under HARP 2.0, your mortgage payment will be lower, but you'll still be underwater on your mortgage – possibly for many, many years.
• Not every lender will offer HARP 2.0 mortgage refinancing. The government isn't offering any incentives for lenders to participate, and many may be unwilling to take on the added risk of refinancing underwater mortgages. (In fact, our sources tell us that lenders still aren't refinancing mortgages with a loan to value ratio above 125% – meaning that if you owe more than 25% of what your house is worth, it may be very difficult to find a lender to actually fund your new mortgage.)
• You'll have to pay any fees associated with the refinance.
• Even if you technically "qualify" for HARP 2.0 according to the government's criteria, you may still be turned down for a refinance or loan modification.
• HARP 2.0 isn't your only option. Depending on whether or not you're current on your mortgage payments, there may be other loan modification or mortgage refinance options under the government's Making Home Affordable program.

So, is HARP 2.0 right for you? The answer is, "It depends." For some underwater homeowners, HARP 2.0 may mean more affordable mortgages that allow them to stay in their homes. But before you pursue a HARP 2.0 refinance, you need to understand all the possible implications. That's why we offer the Homeowner 101 Assessment and Action Plan, which is designed to help you evaluate all your options for dealing with your underwater mortgage and choose a solution that works before for you.