Should I refi using HARP

This loan is a no brainer.. four years of payments on a $300K loan and still saving $55 per month... absolutely... 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

I would recommend it. Not only are you saving $55 per month but with shaving 4 years off of the term you are really saving significantly more. Say for example your principle payment is $1200 a month. If you calculated these savings $1200 X 12=$14,400 annual savings then $14,400 X 4 years= $57,600 in reduced term alone. Your monthly savings of $55 is another term savings of $13,200 for a total savings of $70,800. Good for you for looking into it. So often people look at the monthly savings and think it might not be worth the trouble but if they can look at the big picture the savings can be VERY impressive.

In addition, I agree with Paul about them likely rolling in some costs. Of course no person or business can do this for free so although I personally do not like the marketing of "no closing costs" because I think it is somewhat misleading I still think this is a good deal for you. 3.99 on a 20 year conventional HARP loan isn't a bad rate at all. Based on my local pricing (not in GA) there is probably a little padding in the rate to pay for the costs internally. You could likely get a slightly better rate if you were to pay some of the costs of the loan.

Sounds like a good deal but I'd caution you on your value estimate. I am currently doing a HARP refi for a client that overestimated his property value on the app by $80k and he just barely slid under the acceptable LTV limits. Use Zillow, Cyberhomes and the Chase on-line value estimator then average the three and that should give you a very close property value estimate. HARP has an LTV cap at 125% but most lenders will not go over 105% so if you owe $301k and then if your value is now $286k or lower you might have a tough time.

Sounds like a win win. You will be saving years on the terms of your loan as well as saving money monthly. HARP 2.0, the new program has no LTV cap so even if DU or LP give you a different value you will be able to do a refinance there might be a small additional cost depending on the LTV.

weigh out this deal and another one with you paying CC or rolling them in to the loan...but sounds like its pretty solid so far ...good Luck

Is there a downside? No costs, lower rate, shorter term, lower payment. What's not to love? Go for it. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950