Lender paid PMI so everyone says I don't qualify for HARP...

nsnow76
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I want to refi my house that I bought in July 2008. I do not have a 2nd mortgage and it it has never be refied. I used BofA at the time and they had some "prefered" program that allowed me to put 5% down. I don't have any equity in the house as Zillow says it is worth $7k less than when I bought it. I did however renovate the home instead of using money as a down payment so it should be worth more than when I bought it. When I speak with banks about a HARP refi they say since I did the "prefered" program that has lender paid PMI then the only bank that will refi HARP is BofA. BofA says they do not do HARP refi for that program but I could refi as long as my home appraised 80/20. Anyone know how to refi this home without bringing a ton of money to the table if my house doesn't appraise?

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February 14 - Charlotte

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Answers (2)

Steve Greene, "Steve Greene"
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If I understand correctly, your loan currently has MI on it. To refinance into a new loan (even if it's with the same lender) an MI company would have to be willing to insure the new loan. If the LTV is 100% or higher, I know of no MI company that would consider it. You should do as much research as possible to be sure about your estimate of value. Even at a 95% LTV, you could likely obtain a new loan. Ultimately, you will be risking an appraisal fee if you decide to try it. And I echo the previous response. Bank of America's mortgage division is having its problems these days.

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February 14

shapiroamg
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Of course BofA proabaly isnt answering their phones. I would think they should and would refi without worry of MI since they are the servicer.
I would suggest speaking to a local Realtor and getting a better opinion on what your home value might be. If you have less than 20% equity, look at the possible cost of PMI, it still may save you $ versus BofA. BofA is having some well publicized issues in dealing with volume right now.