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Who can refinance me if I have LPMI?

I've been inquiring about refinancing under the HARP 2.0 program for a while now and no one seems to be able to do it. My loan is currently serviced by BOA and has LPMI. I live in IL and am a 121% LTV ratio. We have very good credit and good income and I just can't understand why no one can refinance my loan. My last refinance was done in 2008 at a rate of 6.990% (yikes!). Can someone please help me?? by birdie_751_672 from Sandwich, Illinois. Aug 26th 2012 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

LPMI is not a problem... there are lenders out there doing those loans.. The real question... is your loan Freddie or Fannie.. How's your credit, how's your income.. Has your file been run through an automated approval system and what were the results.. 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

Aug 26th 2012
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Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 679 contributions

I am an Illinois lender. One important note, the LPMI can't be done on a HARP refinance and you will need to pay the monthly MI. The PMI premium will stay the same because the certificate is transferred from your old loan to the new one. It's just that you will have to pay it monthly going forward. Since I don't know the details of your existing loan (original LTV), I want to point out that there could be a possibility you may be close to 78% LTV on your original loan. If that's the case, it would make zero sense for you to refinance as you would start the PMI all over again. My advice, contact B of A and find out how close you are to having the PMI automatically dropped. Even if it's not for another year, and it amounts to a few thousand $'s, you may want to think about paying down and then doing the refi. It still would be a HARP, but you wouldn't have PMI. I just closed a loan like this.Contact me if you have an questions. b.lanis@comcast.net or www.myhomefunds.com

Aug 26th 2012
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,385 contributions

Your biggest problem is that most Lender Paid premiums are not actually pre-paid by the lender, even if you paid the life premium up-front. Sadly, many times the lender believes that making the premium payments monthly or annually may leave extra cash in their pocket. There are no investors that I am aware of that will allow you to transfer the existing MI Cert to the new loan AND keep it a lender paid premium. This means that the premium will be converted to a borrower paid monthly premium. The cost of the premium that you will now be paying will eat up a lot of your anticipated savings, but you should still come out way ahead. Do find out who issued the original MI Certificate. Depending on who it is will likely determine if a new investor will accept it, because not all participating HARP lenders accept all existing MI Certificates. Good Luck to you. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

Aug 26th 2012
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,636 contributions

HARP is not perfect. Mortgage loans WITH LPMI are especially difficult, but not impossible to refinance under the HARP program. Because they are significantly more difficult, many lenders just simply shy away. Personally, the way I look at it, I can spend a significant amount of time working on a LPMI loan only to find out I cant do it a month later, or that there will be no value in you doing it. In that same time frame, I can work on many loans that I know for sure will close, so I pass on all LPMI inquiries.

Aug 27th 2012
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Ray Hazucka (r.hazucka@mybbmc.com)
#64 ranked lender in Illinois - 36 contributions

is it one time LPMI or lender paid monthly? Who is the PMI company? Ray Hazucka

Aug 26th 2012
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

FIRST, what is your gross income and what you pay on your credit report?? Harp is very sensitve on debt ratios.. What has changed for you for the better since 2008? the rate in 2008 is very high.. you can email me at yourloanpartnerforlife@live.com linda

Aug 26th 2012
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OP here. To answer the questions: -My loan is owned by Fannie Mae-My credit is over 720, husband's is over 700-We've been approved for everything by two different lenders but then get hung up on the underwriting system because of the LPMI-Our LPMI was a one-time payment, according to BOA-I don't know the PMI company; that's on my list of things to find out tomorrow, though I'll probably have to pry it out of BOA-Our gross income should be in the $100K range right now-We have had no issues with debt ratios-To reiterate, we are at a 121% LTV ratio if you take into account the current balance on our mortgage and Fannie Mae's AVM for our homeI am aware that I will still have to pay PMI on a refinanced loan, that's not an issue. I just need to refinance to lower my payment or else I'm going to be stuck in a two-bedroom home with three children UNTIL I DIE. Call me greedy, but I'm not happy to have gotten locked into a 7% loan with no option to refinance at the current rates because of no fault of my own. I've never had a second mortgage, never used my equity to pay off other debts, never been late on a payment, nothing. This is exceedingly frustrating and I do appreciate the advice and anything further anyone has to offer.

Aug 26th 2012
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Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 679 contributions

Birdie: I don't see a problem with your scenario at all. Don't know why the other lenders had an issue. Although, it could be because of the LTV. Many lenders have limits/overlays on how high they will go, even if Fannie and Freddie say it's now unlimited per HARP 2.0We have unlimited LTV because we're a direct seller. Please feel free to contact me if you need more info.

Aug 26th 2012
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Jeff Albrecht (Doctor_Mortgage)
#94 ranked lender in Texas - 77 contributions

We lend to a 97% LTV for the HARP/Fannie Mae DU Refi Plus. The value of your home (as you mentioned might be 121%) will be determined by the DU. You might get a PIW (Property Inspection Waiver), depending on the value that you believe your home is worth and the statistics for your MSA. Or you might bet an approval with a full 1004 appraisal required. The only way to know is to ask the people that you have worked with to share the DU findings with you. I'd be happy to conference call you guys, and walk you thru this. If you did need the appraisal, do you have the financial ability to pay the loan down to 97%? We can also get you a new LPMI policy at the 97%. I have 4 clients this month with LPMI between 95-97% LTV, and all of them are approved! Call me to discuss / 512-807-2951, or go to my website to apply online. www.JeffAlbrecht.com

Aug 26th 2012
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

Hello Birdie.. if you can get a copy of the DU findings, especially about the 3 page, it will show what figures that the loan officer put in for value.. this can be a tricky part of the harp refi.. if you want, email me at yourloanpartnerforlife@live.com your address, and I will send you back a property analysis, that is current.. linda

Aug 26th 2012
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Derick Condron (rightstartoregon)
#31 ranked lender in Oregon - 598 contributions

The issue may not be the lenders it may be the mortgage insurance company. The mortgage insurance company has to agree to recertify the policy. The lender will need to submitt a request and you will need to find a lender that allows your current mortgage insurance company to insure their loans.

Aug 26th 2012
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Just found out that Radian insures my mortgage, if that matters.

Aug 26th 2012
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Ray Hazucka (r.hazucka@mybbmc.com)
#64 ranked lender in Illinois - 36 contributions

Birdie, I have two lenders which would be able to handle your refinance. Please let me know if you would like todiscuss. Thanks, Ray Hazucka

Aug 27th 2012
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