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Looking for someone to help with HARP 2 refi or regular (if possible) in CA. owe around $318,000

Zestimate/Zillow show an estimate value of $317,500-$339,000.  We are currently at 6.25% rate with LPMI included in the rate and would love to take advantage of the new rates to lower our monthly payments.  Our current loan is with BofA, not sure if we really want to go through with them!
  • July 17 2012 - Ontario
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Answers (9)

Best Answer

LPMI transfers were allowed in HARP 1 but at the time it was near impossible to find a bank that accepted them.  This has changed drastically with HARP 2.0.   

If you have already applied for HARP 1, assuming your loan was sold to Fannie by May 31, 2009 your loan will very likely be eligible.   Once your initial findings are run in Fannie Mae software it will confirm the eligibility for you.  A small % of Fannie loans come back in the software as ineligible (<3% from what I have seen) due to "credit enhancement".   These are loans that were sold to Fannie by the required deadline, but after closing had this enhancement placed that renders the loan ineligible.

It is statistically unlikely this will happen on your file.   To have your findings run any competent originator can do this for you, it requries that you submit your application information (income, assets, etc) and allow a credit report to be run.  

  • July 17 2012
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  • July 17 2012
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Many of large banks CHOOSE not to allow Harp refinance on loans they service that contain LPMI. It is shameful that they take this approach but they certainly are allowed to. There are other banks that will do HARP refinance with LPMI transfer so you aren't "stuck" with your Servicer.
  • July 17 2012
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We never did an application before, we called to inquire and were told we wouldnt qualify simply because of the LPMI?  Honestly, when we asked why, the rep simply said "I dont know" lol!
  • July 17 2012
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If you qualified for everything else last time, but LPMI was an issue, the only ways to find out would be to...

A.) get more information about your MI policy and have a lender find out if it can be transferred,

or

B.) have a lender run a new Desktop Underwriter and see what the findings say about the LPMI.

B is probably the better option.

Some LPMI policies cannot be transferred.

Greg
  • July 17 2012
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We have Fannie Mae loan, how/where can I find out about eligibility?  We have never been late on a pymt, credit score is >800, and no debt.  Our only issue when we  last inquired in 2010 was that we had lenders paid mortgage insurance. But I hear with the new 2.0 program we would now qualify...
  • July 17 2012
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You will definitely want to use HARP refinance for that scenario.   Once your initial approval findings are determined it will reveal the LPMI provider and certificate number.   This will allow us to find out if your current policy was "Single Pay" or Recurring Pay.

If Single Pay, the policy will transfer to the new loan without any impact to you.  If it is recurring it will convert to a Borrower Paid monthly, at the same rate B of A is currently paying to the existing MI provider.

For loan to value up to 105%, there are several good options of lenders to work with which will allow you to get better overall pricing on the loan.  If you need to exceed 105%, there are still good choices but there might be a small adjustment on the terms.

I specialize in HARP loans and I am in San Diego.  If you would like a closer look at your options you can contact me through my profile.
  • July 17 2012
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You're in luck! There is a multitude of people here willing to help you out with this!!! You'll find no shortage.  :)

The question I would have is do you know if your current loan is backed by Fannie or Freddie and if you have any more details about your Mortgage Insurance. LPMI transfers can be done, we're doing a lot of HARP refinance with them, but there are some specific guidelines that have to be met.

Sincerely,
Greg
  • July 17 2012
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do you know if the loan is Freddie Mac or Fannie Mae eligible?
if you would like i can help you with this and we dont need to use BofA
  • July 17 2012
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