Close

See current mortgage rates on Zillow Mortgage Marketplace

Profile picture for mcberry

Should I do a HARP refi now, or wait?

I currently am about 90K underwater on my condo. I'm on an ARM now @ 6 mo. LIBOR +2.25% - right now I'm at 2.75% and next month it will adjust to 3%. I can refi through HARP 2.0 to 4.5% with around 4K closing costs. Obviously, this will increase my payments now, but hopefully down the road will break even.

I know rates will eventually increase, but due to the unpredictability I don't know if I should refi now, or wait a year or 2 (or until HARP expires) and refi then, and enjoy the interest savings now.
  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.
April 12 2012 - Canton
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 (5)

We have a float down option and doing a HARP loan you really should not have ANY fees - These are a free refiance!!!  Run Fast!!

  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.
April 12 2012
Profile picture for mcberry
Thanks all. The closing costs include $1566 in points (loan is for around 142K). The reason is that it's so far underwater and a condo. Origination fees are around 1100. No escrow account, but around 300 in prepaid interest. The appraisal is waived as well. My loan officer told me if I locked in today I would be able to save around 500, but they don't float down. I'd have to let the lock expire, then wait 60 days. I could also just find another bank. I'd only be out the credit report fee, so perhaps I'll look into that if I can get lower fees.
  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.
April 12 2012
With the chance of possible rising rates I wouldn't wait. It all depends on how long you plan on staying to see how soon you will recoup your closing costs. Good Luck!
  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.
April 12 2012
mcberry,

Absolutely, try to get your refi done, rates will most certainly go up, not down, and as long as you are wanting to stay there for at least a few years, you really want to lock that rate in! Do not wait.....

Blessed to Serve,

Stieg Strand
  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.
April 12 2012
There is no direct answer to this. I can tell you from over 18 years experience, when rates start to rise, they usually do so very quickly. We all expect rates to be higher in the next 12 to 24 months - how much higher is tough to predict. The other issue that you may run up against is that condos have and are losing value quicker than houses, which may cause a different problem down the road. I am curious as to why your closing costs are so high, unless that number also includes your escrow account. Let me know if I can help you out at all.

Thanks,

Mark
  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.
April 12 2012
 
Related Questions
Looking to refinance property in Michigan under HARP 2.0, need direct lenders
Profile picture for Hunt Gersin
Latest answer by Hunt Gersin
May 20 2013 | 7 answers
Should I do a HARP refi now, or wait?
Profile picture for James Stachyra
Latest answer by James Stachyra
April 12 2012 | 5 answers
Waiting period to refinance
Profile picture for Rebecca Vennesland
Latest answer by Rebecca Vennesland
December 01 2011 | 6 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. 46085 Gainsborough Dr, Canton, MI Home For Sale
    46085 Gainsborough Dr, Canton, MI 48187

     For Sale: $229,800

    • Beds: 4
    • Sqft: 1606
    • Baths: 2.0
    • Lot: 7840
  2. 205 Shana St, Canton, MI Home For Sale
    205 Shana St, Canton, MI 48187

     For Sale: $214,900

    • Beds: 4
    • Sqft: 1962
    • Baths: 2.0
    • Lot: 8712
  3. 4064 Bridgeview Ln, Canton, MI Home For Sale
    4064 Bridgeview Ln, Canton, MI 48188

     For Sale: $239,900

    • Beds: 3
    • Sqft: 1713
    • Baths: 3.0
    • Lot: --