Are there lenders outside of your current lender willing to refi under-water mortgages?
I applied yesterday under the HARP2 program for a refi to reduce my interest rate with my lender GMAC.I've read so many articles online that say that the HARP2 programs allow underwater borrowers to refi at the "historically low rates" that everyone else has access to. Yesterday's rates were hovering at 3.875%-4.125% for 30 year fixed.My lender offered me 4.5% (4.598% APR).Here are my stats:Loan Amount: $173KHome Value: $78K=LTV of 220%FICO: >800Financing a 30 year fixed to a 30 year fixed.There is no rate difference per my lender with going from 30 year to 20 year fixed.My current rate is 6.25% andGMAC is offering me under HARP2: 4.5% at .525% pointsFees: -0- appraisal fee$1,567 Orig fee ($912 = Loan Discount at .525% + $305 Lender Service Fee + $350 Underwriting)$400 = Closing FeeTitle insurance, endorsements, title search, state taxes, etc are typicalMy gut feel is that the deal seems good considering my LTV is 220% - Yikes. Are there lenders outside of your current lender willing to refi under-water mortgages? Is shopping an option? Is this a good deal?(I'm am trying my hardest to resist walking away for personal reasons so please do not comment on that).I've read my application and rate-lock agreement and am probably going to sign this weekend.Any feedback is greatly appreciated!Thanks! by daniel_566_596 from North Augusta, South Carolina. Mar 30th 2012
Chris Jones (chrisjonesmtg)
#38 ranked lender in Arizona - 31 contributions
Yes. There are lenders willing to refinance underwater homeowners. Most banks have access to HARP 1 and HARP 2, I would imagine....The rate you are being quoted doesn't seem all that bad. I have found that there are adjustments for loan to value exceeding 95% on these programs and they go up substantially over 125%. Good luck.
Melvin List (melvinlist)
#143 ranked lender in Florida - 124 contributions
You will probably knock off .25% or so if you contact a local mortgage broker.I only lend in Florida!
Chris Brengelman (chrisbrengelman)
#46 ranked lender in Ohio - 28 contributions
Daniel,If your LTV is really that high.....I would say go for it! Based on the LTV alone and some lenders putting overlays on the Harp program, if GMAC can really do it without any out of pocket, its a deal!Obviously you plan on staying there for awhile so i would just pay a little extra every month at the lower rate. Good luck and i hope they can do it for you!
Bill Nisbet (billnisbet@gmail.com)
#19 ranked lender in South Carolina - 10 contributions
Daniel, The lender fees sound very excessive to me. All I would charge is an underwriting fee of $895 and a processing fee of $150 and possibly could get you a better rate. Your credit score must be 760+ to go to 220% LTV.Give me a call and I would be happy to quote you.Bill NisbetIkon Financial Group843-412-3414
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Your gut is right... that is a decent deal... but I would still shop... your current lender (GMAC) is not set up to handle the added business HARP 2.0 is producing... underwriting and turn times are in the months not weeks... if you looking to close anytime in the future, you should use someone else.. contact a LOCAL mortgage broker, not a bank or one of those 50 states or internet lenders.. the Broker has access to numerous lenders and can find the right loan product for your particular scenario.. WilliamAcres.com
Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions
Hi Daniel, good question...Those fees are kinda high but the rate is not bad, I might be able to do a little better with your FICO being that high. Please give me a call and we can discuss. I'm only about 45 min from you too! Travis Torcoletti IKON Financial Group (803) 381-5149
Shon Atabaki (ShonAtabaki)
#48 ranked lender in Washington - 95 contributions
That is a reasonable offer from GMAC. However, it is always prudent to get a 2nd & 3rd opinion/offer. Best of luck!
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
I would definitely look to a Local Mortgage Banker/Broker to get some additional quotes. However, if you are really 220% LTV, what you are being offered is a fairly decent deal, not great, but not bad either. Once you see what some competition can do, you'll know how good it really is. Although HARP really has no LTV issues, the fact is that virtually all lenders have their own overlays and most won't take deals with LTVs over 150% unless they are already the servicer of that note. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com
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