Risks of LPMI and should I wait for Harp3?

Chances are you won't qualify for HARP 3.0 either... as most of the refinance programs target loans initiated prior to June 2009. If you can refinance now, and there's a savings for you, then i would do it.. As far as LPMI, there's really no risk to you.. by choosing the lender paid option, your MI is part of your interest rate, so even though you have a higher rate, the fact that there is still savings is good... if you choose borrower paid MI, then you might not see that much of a savings, but as your property increases in value, once you get to 80% LTV, you can have the MI removed.. So there are going to be a few factors that need to play into your decision.. How long do you intend to stay in your home?.. Do you intend to increase your family size? so only you can answer which way is going to work best... 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

You need to measure the cost benefit. Have your Mortgage Professional do the following for you. Use your existing loan as the baseline. Take the new loan (new loan amount, new interest rate) and amortize it with your current payment. How many months will you have to pay on the new loan (with the old payment) before your new loan balance matches what the balance would be on your old loan at that same point in time. If it takes longer than you expect to be in this house, then it is probably not a good deal. As for should you take lender paid MI and will it mess with HARP 3.0? Who knows if a HARP 3 ever comes about, but it is likely it will have the same trigger date (5/31/2009) as the others, so I would not wait for a maybe. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

HARP 2.1?

I am a local mortgage consultant out of Mundelein and would love to work with you. HARP 3.0 is just in talks and not guaranteed. However, you can and probably should refinance now in order to take advantage of the low rates. Even if Harp 3.0 does come, there is no guarantee rates will be as low as they are now. Furthermore, there are NO risks to a LPMI loan. Yes you get a slightly higher rate but the net savings is greater since you are not paying the pmi-the bank is on your behalf. The bottom line is that if the costs justify the new rate you would be getting and thus the savings, then it is always a good time to refinance. There are no pre-payment penalties on the loans, so you can always do it again in the future if it makes sense. If interested in talking more, I can be reached at 773-817-2180 or at RLurie29@yahoo.com. Regards, Richard Lurie C/O Fisher Mortgage

I don't know what your loan amount is, along with what the closing costs are, so I can't calculate your monthly savings and time to recoupthe closing costs which will be added to your mortgage. If I'm reading this correctly, are you at a 90 LTV with a weak appraisal? If so, then how long are you intending to live there? As it would appear that you have some equity and you couldpossibly make a future move. The best option with this limited information would be to minimize what is being added to your mortgagebalance now, just in case you wanted to move in the future, so that you have the additional equity. Unless you wouldbe planning on living there a very long time.

You should be able to LPMI and 4% as a rate, and I assumming you have 720 or better scoare and meet all others requirements...really need more info to give accurate advice

You should refinance now if you can. Rates might be higher later on and no one knows for sure if there will be a HARP 3 and if you do not qualify for HARP 2.0 you probably wont qualify for HARP 3.

Just remember that LPMI stays for the life of the loan...unlike traditional borrower-paid MI. In regards to what lies ahead for any future HARP option, wouldn't hold your breath since you do not presently qualify for HARP 2.0 today. You may want to consider an FHA insured home loan that will have more favorable fixed rates. If you would like more information, be free to contact me as I'm in the Chicago land metro area. Good luck.