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Considering a DU Refi Plus - need advice!

I am looking to refinance a condo I purchased in June 2006 as my primary residence.  Property is financed through Suntrust.  Property was purchased for $168K with a 30-year fixed, 6.5%, conventional loan.  I have been renting the property for the last 2.5 years as I moved out of state and currently take a nice hair cut on it each month.  I currently owe $138K on the property and have been paying extra on my payment each month to get it down (set to lose PMI on my current mortgage in Nov.).

Every 6 months or so I do some research to see if I have any options available and I always hit a brick wall - Suntrust tells me they wont talk to me unless I miss two payments (I have never missed a payment or been so much as a day late).

Recently, I received one of those ridiculous looking letters in the mail that look like they are from gov't entity stating that they specialize in refinancing properties that are underwater - I decided to call this morning just to see.

After giving all my info, it sounds like I actually may be eligible for the DU Refi Plus program.  My payment is currently $1122/ month which includes principal, interest, PMI, and taxes.  New rate would be 4.375% with an APR of 4.86%.  New monthly payment would be $881 and would include everything as well.  Monthly savings would be $241.  New loan amount would be $142K with a LTV of 105.25%.  From what I have read this Harp 2 refi options requires that the LTV be greater than 105% right?

Overall, I am curious if this is about as good of an opportunity as I will find to refinance this property?  Would love some advice if possible.
  • August 02 2012 - Savannah
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Answers (4)

If the rate is better than what you're currently paying, it absolutely makes sense as long as there are no other hidden fees. Did you end up doing it?
  • June 06 2013
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Never considered not making payments...

Any suggestions of where I can check to get some more (quality) quotes without getting 50 phone calls a day from 20 different people?

Thanks for input!
  • August 02 2012
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NEVER not make a payment. You will not qualify. It does not even make sense why they would tell you to do that.

  • August 02 2012
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Yes, you should pursue it.   You should also look to get more estimates.

There is no minimum or maximum LTV for DU Refi Plus Investment Property.

You might be able to get better terms at 105% LTV instead of 105.25%.   There are many lenders who cap at 105% so staying at that level would potentially keep more doors open for you on possible lenders.

You also need to research who has your PMI and make sure they are a company that is able and willing to reissue the policy to your new loan, and if they do, will it still soon expire as current policy allots for.
  • August 02 2012
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