HARP 2 LTV Penalty?

It's possible just because of how HARP works, but both Freddie and Fannie have Maximum Adjustments.. For Owner Occupied 30 year fixed, it's a .75 adjustment... you lender could be using this as a tool to get you to agree to a higher rate.. You could also be using a bank, where the loan officers/application takers are not experienced in pricing... they are trained in taking an application and everything else is passed off to processors and underwriters.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Do not use the local "Big" bank, or one of those 50 states internet lenders or nationwide lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Something is amiss... Maybe they are just explaining something wrong. Bank loan officers are unlicensed application clerks. Talk to another LICENSED local Loan Officer. HARP loans are based on the combined loan-to-value. So just because the first mortgage is under 80%, the total of 141% is what qualifies it for HARP.

Actually...unfortunately they are right. The negative pricing adjustments CAP under HARP 2.0 are exclusively for situations where your LTV is over 80%. If you are not over 80%, then you do not receive the same CAPS on the negative pricing adjustments. They should be able to incorporate that adjustment in your rate instead of charging you though, and just increase the rate.

Give me a call and I'll quote you the correct current market rate. It sounds like your looking at a harp loan and I have many very good lenders for this. Jack C 734-395-9027

Doesn't sound right, I would call a non bank mortgage pro in your area and discuss it with him/her.

I'm a licensed Loan Consultant in East Lansing MI with Union National Mortgage. We offer the HARP 2.0 Refinance so give and I'll price it out for you.ThanksGus DahlgrenNMLS # 80625517-489-2440

HARP guidelines do require for your LTV 80 percent or greater. I do not know of any penalty involved for loans with a lower LTV. Your loan officer may be able to play with the number a little bit to get your LTV to 80 percent so you may qualify.