Profile picture for Kyonghui

Mortage balance is $472000. value is $440000. it is a conventional jumbo loan at 5.78%. Want refi?

With upside down value, no financial institution wants to refi.  I would like to find 5.0% mortgage to refi or do a rate adjust.  Is it possible?  I had the loan since June 2005 with PenFed credit union. They are willing to do rate modification but charge 1% of the loan. It is at 5.65%  Do you think it is work rate adjust?
  • April 13 2009 - Centreville
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Answers (4)

as we revive this thread; it does make a good point.

By the question it's obvious the loan is neither Freddie or Fannie but rather a true jumbo loan.The loan is not eligible for HARP.
  • February 10 2010
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Profile picture for Mortgage Brothers
A quick run down on what is and is not available on the HARP refinances:
1) Current loan must be owned by either Fannie Mae or Freddie Mac.  Kyonghui needs to call PenFed Credit Union and find out if they own the Note or are they just the servicer.  Alternatively you can go to Fannie or Freddie's website and plug in your address and get an automated response whether your loan is in their portfolio.
2) If the present loan did not have mortgage insurance when the loan began then any Fannie / Freddie lender can do the refinance under the HARP program up to a maximum LTV of 105%.   That 105% LTV limitation is not part of HARP, but is the max that secondary market investors are purchasing HARP refinance loans.
3) If the present loan had / has PMI and/or the present LTV is above 105% up to 125% the only option for a HARP refinance is through the present servicer of the Fannie or Freddie owned loan.
4) HARP refinances are available for both conforming and conforming jumbo size loans for areas where the conforming limit is in excess of $417,000.
5) On average conforming HARP loans are around 5.00% right now and conforming jumbo HARP loans are 5.25%

If the LTV is above 125% or the loan is not owned by Fannie / Freddie (let's say PenFred Credit Union hold this persons loan as a portfolio loan) then the only option to do anything is if the lender holding the loan is willing to do something with you.
  • February 10 2010
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Hi, go to efanniemae.com or freddiemac.com and see if you qualify for the 125% refinances. If so, they'll have a list of lenders in your area to contact! Best of Luck! -Pat
  • February 10 2010
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Profile picture for rbhanson43
I am in the same boat with my loan to home value, now approx. 113%.  No one seems to be able or wants to help me (us) refinance, although the government announced 125% loan (refinance) to government mortgages (FMax & FMae) back in the fall of 2009. Very annoyed with the apparent scam.
  • December 31 2009
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