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HARP 2.0 Comparison Shopping

I have been approved for a HARP 2.0 refinance with my current lender and it has proceeded to underwriting. The rate I locked in was 4.875 for a 30 year fixed. My current loan is 225,000. My estimated value is about 120,000. 

My concerns are that the rate is too high. And they are charging almost 3k in origination fees.I have tried to shop around, but every other lender is usually stuck at 125% LTV. This leads me to believe they are still stuck on Harp 1.0. 

So are there any tips on people looking for a harp 2.0 lender? And should I be concerned about the 4.875% rate and the closing costs being too high?

Thanks
  • April 19 2012 - Phoenix
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Answers (4)

If it is owner occupied property 3K orgination at 4.875 is indeed very high even for >125% Loan To Value.

Hard to say where to go, since lots of factors would determine your options, Fannie or Freddie, Appraisal Waiver or No Waiver?   Also, are you able to get approved in the automated underwrting engine required for using a new servicer (harder in Freddie than Fannie). Same servicer is more or less "automatic" approval for eligible loan, but not always the case for new servicer.

I would suggest to try and find a broker that covers your area and is well versed in HARP loans.   If you can make it through the automated underwriting you should have been options available.
  • April 19 2012
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I would shop with a local mortgage broker in your area.  There are plenty of brokers who have lenders with no overlays on HARP 2.0.

I only lend in Florida!
  • April 19 2012
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That quote seems to be on the hi side but it is hard to say with out knowing all the details of the transaction.  Your best bet is to have another lender review your situation to make sure your are getting the best deal.
  • April 19 2012
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Thanks for the replies. And my current loan is in Fannie Mae. And they did use the automated underwriting engine I believe.

Thanks!
  • April 19 2012
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