Will closing cost be cheaper under HARP 2.0?

Hi Darian.The costs shouldn't be $7k. I am here in Ohio and our costs are $805 plus title and appraisal, if needed. The costs of any refinacne have nothing to do with the loan type, unless you are doing a renovation loan. Those are a bit more costly only due to inspection costs. HARP 2.0 IS automated, but Freddie is still at 95% LTV in their system. I can only facilitate Fannie HARP loans, but we have been utilizing the HARP 2.0 guidelines since the day they came out. You should be able to reach a Freddie lender to get this done.

Darian,Cap One is probably quoting you closing costs plus setting up your escrow account. We do have programs with very little costs and also can discuss how to eliminate certain costs. I am in Cincinnati and do many different types of refinances on a monthly basis.You may be able to do a Conventional loan without PMI without even getting into the HARP program. Feel free to email or call me for more insight. Everyones situation is different, so you would need to talk to someone to explain EVERY option to you.

We can handle Fannie and Freddie loans with HARP 2.0 in Ohio for you. Our only closing costs are only around $1000 for underwriting and funding. The only other closing costs you would incur are title fees which you can pick your own local title company for that. Get into touch with me and I can help you. 888-320-7888 - www.MortgageWholesale.net - Ken

That's not true... The HARP 2.0 program has been setup and is ready to go as of the 17th of this month... (unless you're doing 15 year). Also, it would be a huge mistake to use your current lender... they are not staffed to handle the multitude of business HARP 2.0 has created.. Contact a LOCAL mortgage broker, not 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, and their fees and rates are usually lower... WilliamAcres.com

Darian, $7k in closing costs is way too high. I'd stay clear of that if I were you.

Why in the world are you using them. What they are quoting you is terrible. If they are telling you they are not doing HARP 2 yet, then they are quoting you under HARP1. I'm telling everyone to contact a local Mortgage Banker /Broker. DON'T use one of the big banks, DON'T use one of the big national Mortgage factories, and DON'T use the people you are currently making payments to. This is a perfect example of why. It sounds like they may not be willing to do what is best for you. The local or regional Mortgage Banker/Broker is better equipped to handle the volume and we already know what the program is and are set up to perform Another benefit is that your local Mortgage Banker has access to all the lending sources, allowing for an easier fit into the lender or program that makes the most sense. Whoever you choose, make sure you check them out at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Presumably the $7K in closing costs includes prepaids required for setting up an escrow account, but if they're already servicing your current loan, they should be able to "sweep" the escrow account to net fund the new loan. Seems too high! I too would recommend going with someone else who has already rolled out HARP 2.0 & avoiding Capital One altogether. Best of luck!

I agree with all the guys who say "Do Not Use Capital One". Contact one of the Lender 411 mortgage professionals in your area who will give you honest, straightforward information. I'm not saying Cap One doesn't do that but you are so much better off with a local broker than a bank.$7000 sounds high to me but as several of the answers stated that may include 7 or 8 months of taxes for your new escrow account. When you close on your new loan Capital One is required to send you the funds in your existing account.. Good luck...