Profile picture for robodiaz

I'm looking to refinance. Traditional or HARP?

Should I start by doing this the traditional way, finding a bank/company and apply for a loan or do I just go ahead and try the Home Affordable Refinance Program (HARP)? Will it hurt my chances at all either way?
  • January 24 2012 - Seattle
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Answers (4)

Profile picture for robodiaz
Thanks Guys and Gals for the replies. The current value of the home is about 25K less then my loan (~250 loan and a ~225 value). I will contact my current lender BOA and start the process.

And yes my loan is owned by Fannie.

Thanks again!
  • January 25 2012
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Profile picture for sunnyview
I would probably see if you are eligible for HARP first only because it may cost you less depending on the rate offered. I was able to lower my interest rate with my current lender with no appraisal, no escrow and no out of pocket cost. A packet came in the mail, I got it notarized and 40 days later I had my new rate. The interest rate offered was about 1/8-1/4 higher than I could have gotten from a conventional refi, but with no costs it was a better deal in my case.

Shopping a refi should not hurt you in either case. You either qualify for HARP or not. Talk to your lender or check this site here and see if Fannie or Freddie own your loan. And ask a good lender about their rates and fees to compare conventional with HARP if you qualify. There is a refinance breakeven calculator here that also might help you run numbers to pick the best deal for your situation.
  • January 25 2012
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robodiaz,

It will not hurt your "chances" either way. It depends upon what you owe compared to the value of your home (and whether or not your current loan is owned by Fannie/Freddie as Dave mentioned). With HARP 2.0 there may be a greater chance that an appraisal will not be required when compared to a conventional refinance. Find a mortgage professional you trust and have them review your situation and go from there.

Doug 
  • January 25 2012
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Profile picture for daveskow
would be helpful to know  loan balance and  approx property value ?

no need to use HARP if you dont have to

you can also check if loan is eligible for HARP - see below

Here are links to see if your mortgage is owned by Fannie Mae or Freddie Mac:

Fannie Mae: http://www.fanniemae.com/ ... anlookup/

Freddie Mac: https://ww3.freddiemac.com/corporate

  • January 24 2012
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