Close

See current mortgage rates on Zillow Mortgage Marketplace

Profile picture for bald39

Harp loans.. Can you get do cash-out at close ??

I have a Fannie loan that funded and closed 4-23-09. My current rate is 4.875 % on a 30 year fixed. Loan balance is $280K. My townhouse located in Toluca Lake is now worth in the neighborhood $500k. I'm looking to lower my current rate and take about $25k out at the close. My mailbox is full every day with offers to do a Harp re-fi and lower my rate to 3's.. My question is can you do a Harp re-fi with a cash-out at the close or do I have to do a standard re-fi ??
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16 - Los Angeles
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (11)

HARP loans are designed to offer refinance to better loan terms to borrowers who have insufficient equity to do that, much less,take cash out on a refinance.  So, no, "HARP" cannot be used for that purpose.  But. because equity does not appear  to be an issue, you should be able to use other mortgage programs to accomplish what you want to do. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 18
" there is no reason to do a HARP loan now."
===========================
reasons (which may or may not apply to the OP)

1.   Low credit score (HARP has no minimum score requirement)
2.  DTI: HARP has no maximum debt to income ratio  requirement; if you make $1 month you have sufficient income.
3.  BK- no minimum waiting period.

btw: rates in the 3s could be 10 or 15 year fixed (in addition to ARM's)
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 17
Yep.  I just checked all of the guidelines I could find on HARP.  $250 in incidental cash back is the limit.  
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 17
Hi Henri, 

Unfortunately, you can't get any cash on a HARP loan.  If you have plenty of equity, you may qualify for a cash out loan. 
Here are FAQ from their site http://harpprogram.org/faq.php  
Q: Can I get cash out to pay other debts?

No. The Home Affordable Refinance will not return cash to the borrower for the purpose of paying other debts.



Best Regards,
Anthony Nunnely
Mortgage Professional
Columbus, Ohio
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 17
I agree with everyone else for the most part. A.) you can't get cash out on a HARP loan ("incidental" cash out of $250 is allowed), and B.) if your Loan-To-Value ratio is going to be less than 60% you'll have no reason for a HARP loan and be eligible for the best conforming cash-out terms there are.

One thing to note is even the best 30 year fixed rate mortgages out there are not going to be in the 3's. If you are looking at a 30 year fixed rate to lower your rate/payment and would maybe like to take $25,000 cash out if you can there may not be much for you out there at today's rates. They are going to be about the same as what you have, give or take.

However if your motivation for refinancing is the $25,000 it still may make sense. You could potentially lower your payment, or at least keep it about the same, and get the cash for whatever you need it for. If it is for something like debt consolidation it may improve your monthly cashflow immensely, even if your mortgage payment stays the same. 

-Greg
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
The HARP guidelines are simple and straight forward $250 cash back is the limit.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
3 things:

1) You cannot do a HARP refi and take cash out
2) You don't need to do a HARP refi anyway because you have plenty of equity
3) Those offers for 3% are a lie, unless they are pitching ARMs.

If your numbers are correct, then you should be able to do a standard cash out refi and lower your rate 3/8ths to 1/2 point on a 30 year; lower for a 15. Contact me if you'd like hard numbers.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
cant use HARP fr cash out
30 yr fixed rates  below  4% unlikely to be real bonafide offers

use a standard refi to get the rate lowered and the cash back if needed
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
Hi Bald39,

Given that you have so much equity, there is no reason to do a HARP loan now. The purpose of the HARP loan was to allow refinance even if the appraisal was low TODAY. IN your case, if the market value is $500k or so, you are in great shape.

The rate offers that you are receiving are likely for a 5 year fixed adjustable rate.

There are better interest rate options available to you than your current rate, and these are available on the 15 and 30 year fixed rate loans, as well as the 5 year or 7 year adjustable options.

Good luck to you! If I can be of service, my contact info is below:

Eric O. Nelson, III
Sr. Mortgage Planner
[Spam removed by Zillow moderator, see our Good Neighbor Policy]
NMLS # 120412
CA BRE  # 01258488
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
Hi Henri,

You will have to do a standard cash-out refinance.  The rates tend to be better than HARP, especially if you have this much equity.  

If you are listening to messages stating a rate in the 3s for a 30 year, these may be old messages (6-12 months old).  Or will require a hefty buydown price.

Best of luck,

Bryan  
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
No, HARP does not allow cash out, the maximum cash in hand is $250, and if timed right you can potentially "skip" 2 payments and get refund of current impound account if you are trying to maximize cash at your disposal once the dust is settled.  

Currently available HARP rates on will not be "in the 3's" unless you are doing a 15 year term or paying very hefty closing costs.   

For a cash out application if you keep your loan amount at 60% or less of appriasal and reset back to 30 year term, good chance you could keep your payment similar to current payment with the extra cash in hand.   Regular refinance does have much stricter guidelines than HARP (apprasial much more likely, stricter minimum credit score needed and greater impact of credit score on pricing, stricter credit history requirements, lower debt to income ratio needed, etc). If you can qualify for regular refinance and need the 25,000 cash out, applying for regular cash out refinance would make more sense for you.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
 
Related Questions
Is it a good idea to refinance to remove the PMI?
Profile picture for Justin Sheftell
Latest answer by Justin Sheftell
11 hours ago | 10 answers
  • Asked by JoseSaucedo
  • In Refinance
  • 17 hours ago
Refinancing
Profile picture for Tracy Story
Latest answer by Tracy Story
13 hours ago | 7 answers
  • Asked by JoseSaucedo
  • In Refinance
  • 16 hours ago
Streamline loan refinance
Profile picture for Andrew Byrd
Latest answer by Andrew Byrd
March 28 | 15 answers
Can I refinance FHA loan to remove MIP and get cash out?
Profile picture for Robert Fair
Latest answer by Robert Fair
March 25 | 13 answers
Can I refinance a 5.5% ARM when I owe only $38K?
Profile picture for weightpit
Latest answer by weightpit
March 22 | 7 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 6250 Hollywood Blvd UNIT 11E, Los Angeles, CA Home For Sale
    6250 Hollywood Blvd UNIT 11E, Los Angeles, CA 90028

     For Sale: $1,275,000

    • Beds: 1
    • Sqft: 1942
    • Baths: 3.0
    • Lot: 196240
  2. 5031 Onteora Way, Los Angeles, CA Home For Sale
    5031 Onteora Way, Los Angeles, CA 90041

     For Sale: $775,000

    • Beds: 4
    • Sqft: 2201
    • Baths: 2.0
    • Lot: 4650
  3. 2621 Rutherford Dr, Los Angeles, CA Home For Sale
    2621 Rutherford Dr, Los Angeles, CA 90068

     For Sale: $1,349,000

    • Beds: 4
    • Sqft: 2242
    • Baths: 2.0
    • Lot: 3631