HARP Questions

[Kevange09]

Some large lenders are offering refinance deals that do not cost any money but those are not a true HARP loan, in order for you to qualify for a HARP your loan has to have been purchased by Fannie Mae or Freddie Mac prior to 5/31/2009, also no mortgage lates in the last 6 months. Where I work 99% of the time an appraisal is not needed, the customers estimate of value is input to the computer and if the system doesn't accept it it will tell you what it thinks the property is worth and you can renter that as a value and almost all of the time it then says no appraisal needed, the point of the program is for those that have lost value in their property to refinance, these are the same as any other refinance and the standard fees are charged which you can include in your new loan amount if your current loan is with Fannie Mae, if it is with Freddie Mac they only allow you 4% or $5000, whichever is less. There are lenders that offer refinancing with no fees that charge a higher rate to cover, everything would be disclosed on the good faith estimate , truth in lending and itemization of amount financed, the rates for harp should be the same as a regular refinance, if not bett, hope that helps

 

[Jex]

Yes you have to love the zero closing cost spiel a lot of lenders use.

Any lender can make it zero cost, either out of pocket or not rolling it into the loan.

 

[yankebabie]

That makes more sense. If I am continuing to make mortgage payments on this mortgage the payoff would change by the time we close on the refi so the loan amt should be lower than the $134, 000 that my papers I just got say. So let me see if I get this, the actual loan papers are not signed until the actual closing and that is when I will find out what my final loan amount is, is that correct? My projected loan closing date is 5/19, so would they have also projected the loan amt accoridng to that closing date? Sorry about all the questions. Is the closing done in person? not through forms in the mail?

 

[yankebabie]

I FINALLY got to speak to someone at B of A. After leaving several messages for loan officer and not getting any return calls, I called and asked to speak to supervisor. He was wonderful in explaining everything to me and spent the last hour on the phone with me. I totally understand how everything works now and am relieved and happy to be able to sign these papers and send them in. Thank you so much for ALL your help!!

 

[disneylove69]

Just did mine with chase. It was slow and the guy was rude. In the end I savsed overv $400 a mth and got $40 back. The numbers changed twice before signing due to insurance and tax to be paid were close to sign date. Also didnt have to pay mortgage for 2mths. I was also told to ignore the figures they sent on closing costs.

 

[Kevange09]

lenders are required by law to have a HUD-1 settlement statement available to you 48 hours in advance for you to review, the lender will not always adjust your loan amount prior to closing without you requesting it, make sure you have your final numbers with final loan payoff amount available 2 days ahead and you can request your loan amount be lowered, the maximum that you are allowed to get back on a HARP loan is $250. Your costs will vary depending on the month you settle vs when your tax and insurance bills are due. It is typical to take 60 days for the process, where I work we were even longer than that for a bit but we are finally caught up now that we have been working extra overtime, good luck, hope it works out

 

[yankebabie]

So if they don't adjust my loan amount they give me the difference in a check at closing? What if the adjustment is more than $250?

 

[yankebabie]

Do they automatically send you the Hud 1 statment or you have to ask for it? Do I understand correctly that they could have already adjusted the loan amount before that once all the escrow numbers and what not are settled?

 

[Kevange09]

Once your closing date is scheduled and you are close to that time the title company or lender orders a payoff statement to see the amount to pay in full, once that is obtained your loan officer can give you a very close estimate regarding what your loan amount should be, if the hud1 shows you getting more than $250 back it gets applied to your principal, I would insist your loan amount be lowered, why pay interest on money you never received. Once all conditions are met on your loan and it gets cleared for closing they send the bank fees to the title company to prepare the hud1, make sure your loan officer gets thati to you in advance to review, hope that helps

 

[drinkme]

We're going through a HARP refi right now, too. It's through Wells Fargo. The guy we're working with is great. No complaints (so far). The only thing we've had to do is sign a couple of papers and email them back. I'm thinking we won't close until after April 1st.

I also have the papers showing all of those numbers for closing. Thanks for explaining everything.

 

[yankebabie]

One more thing I can't seem to wrap my head around. My loan papers I got in the mail in my welcome package say $134,000. Good Faith estimate says $6000 in closing costs. Everyone, including B of A say that they have to inform you of any charge that may occur but closing costs are probably no where near $6000. So when I am actually at the closing my actual loan amount should not be $134,00 but lower than that? Then they will adjust my monthly payment accordingly? They seem to be basing everything on this $134, 000 amount but if it is going to change how can they do that? please explain this to me.

 

[mikehn]

I thought this was going to be a question about Harp Lager, a popular beverage this week