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Did I get hammered on my Harp 2.0?

I'm about ready to close my harp 2.0 refi.  I know it does no good now but would like to know if I got a bad deal.  I paid 4500.00 Total (impounds included) and got a 4.125 rate.  I owe 163000.00 and got a loan for 167000.00(500 out of pocket). I have  a credit score of 775-790.  Plenty of reserves and the house appraised at 156000.00 
  • June 30 2012 - Riverside
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Answers (5)

Profile picture for user3204793
Not sure if this response is too late, but I'm getting 3.875% and I got 175 credit towards my impounds.  So, basically I got enough credit to pay for the lender origination fee  of 1000 and title services of 1245.  I got a total credit of 1970.  I still haven't received my appraisal, but I think my LTV might be 105% or lower.  However, they quoted my LTV as being high, so I'll have to wait to see what appraisal says.  My current loan balance is 390794 and my new lender made it 396000 by adding my impounds to the blance, so I'm going to ask him to take it off....
  • August 06 2012
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Most properties are offered an appraisal waiver in Fannie Mae underwriting software. If your findings came back without this option, you might ask if your pricing would improve if you close at 105% Loan To Value (assuming you would bring in the small amount of cash needed to make up the gap). If your balance is 162790, your actual payoff will be higher due to per diem interest owed and a few small payoff demand related fees.
  • June 30 2012
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Profile picture for mikereese
Here are the numbers in alittle finer details.. Yes I did owe 163000.00(now 162790.00 so I'm sure I will get that 210.00 back.  Impounds are 1166.00 pre interest 566.20.  I did have to pay for a appraisal(425.00).  It is a fannie loan.  The loan amount is for 167000.00 and 425.00 out of pocket for the appraisal.   
  • June 30 2012
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Nope, you did not get hammered. You may/probably would have been able to get a little better deal elsewhere but we don't know enough to tell you for sure.

How much of that $4,500 was impounds and what were the exact closing costs? Impounds have no bearing on the discussion really, those are taxes, insurance, and interest you are going to pay either way. It's the actual closing costs that matter.

Closing in July, with a first payment date of Sept 1st, tax impounds are going to be very high as the lender needs to collect enough to ensure they can make the 1st installment coming up. If your insurance is due soon that will only add on to how much needs to be collected for impounds.

And did you owe EXACTLY $163,000 and get a loan for exactly $167,000? Or was the payoff any more than $163,000 on the dot?

I'd also want to know if your your refinance is a Fannie Mae or Freddie Mac refi, and what level approval you received. Based on what you are telling us I would assume you received an Approve/Eligible (Fannie) or LP Accept (Freddie) but without knowing for sure I can't say.

In the end a 4.125% rate is awesome, even if there are currently lower rates out there, and being able to do it without having any equity, paying for an appraisal, or having to purchase mortgage insurance adds to the level of awesome.

If you are worried about adding $4,500 to your loan amount (I wouldn't) you'll be getting a refund of every penny in your current impound account, if you have one, shortly after closing your refinance. You can always send that to your new lender and have it applied to principal if adding to your balance is a concern. I would HIGHLY advise against doing that, but it is an option of yours.

Greg
  • June 30 2012
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A better structure would be to try and keep your loan at 105% Loan to Value if possible, that usually provides better pricing.    Most HARP loans are done without an appraisal.   Did you actually have an appraisal or was 156,000 the value used without an appraisal done?

For Freddie Mac loan to use the waiver you have to use Freddie's value indication.  For Fannie Mae loan, there are a few lenders who will allow the waiver above the Fannie Mae indicated value, if you have a Fannie Mae, good chance you can stay at 105% and get a waiver.

Rough estimate, if Fannie Mae loan, rate should be about .125 lower and TOTAL fees about $1,200 (not counting impound account or per diem interest).

If Freddie Mac loan, and over 105% Loan To Value, your estimate seems in range.   Rough estimate at the rate you are offered would be about 2,600 TOTAL fees (not counting impound account or per diem interest)
  • June 30 2012
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