we're (hopefully) close to closing on a refinance with our current lender under the new HARP. our new rate was calculated not only based on our credit scores (which are excellent), but the value of the home. we're underwater due to the housing crash, so aren't eligible for the lowest rates out there, but are still able to lower our interest rate about 1.5%, so it's still worth it. The only thing we've had to "do" is an appraisal. We had to pay an application fee upfront which included the cost of the appraisal. If the appraisal came out too low to refinance, or resulted in an interest rate too high for us to consider it worth it, we would have been out the appraisal fee. The total costs, including the application fee and points, but not including setting up the new escrow (that will be an even wash since we have an escrow account with our current mortgage) will be about $5K. So far it's been really easy--just had to schedule and be home for the 15 minute appraisal. Haven't had to provide any documentation since it's with our current lender, which has been nice since it was a real pain during the original processing. we've been at it for about a month, just got conditionally approved this week, and are expected to close by Feb 20. under the new HARP, you can shorter the term of your loan, but can only refinance if it will lower your monthly payment. we'll be lowering our monthly payment about $320 a month, but are going to continue to pay what we've been paying so we can pay off the mortgage earlier than our original term.
