Comparing HARP 2 Mortgage Lenders Part 2

by Hugh in Tampa, Florida and by Steven in San Antonio, Texas

Ask Kate about Comparing HARP 2 Mortgage Lenders Part 2: Hugh in Florida wants to know his next step after his HARP loan is turned down due to his co-borrower's credit scores. Steven asks where he can find reliable and honest mortgage lenders for his refinance in Texas.


Question 1: Refinancing with Harp 2

By Hugh in Tampa, FL

Kate, My loan was through IndyMac-OneWest. I have tried to do 3 mortgage modifications which were denied and asked for refinancing with the Harp Loans with them.

I have been given many reasons they aren't doing the Harp Loans:

1. Don't have the guidelines in place.

2. We don't do Harp 2 loans with private mortgage insurance.

3. We aren't doing them - period.

We have a sticky situation as myself and my son are on the mortgage. I am the primary and he is the co-borrower. I have good credit and he has a middle score of 610.

Due to twins being born in 2009, medical bills, daycare and insurance for the children, he got behind financially.

We are looking to lower the interest rate and payment basically. We have no late mortgage payments on the home and real estate taxes and homeowners insurance are current.

I have been talking with banks and mortgage brokers to no avail. My son's credit is the issue.

I had read that the HARP guidelines were suppose to be easier on the credit issues, but the loans can't get by underwriting, though my side looks strong. Can you give me any suggestions?

The house is underwater; but not significantly compared to what we owe. The neighborhood solds will show a wide variety. We have upgraded the home since the last appraisal in 2009.

Ask Kate at Get-Your-Best-Mortgage-Rate.com
Ask Kate answers: Refinancing with Harp 2

Hi Hugh,

This is a tough one. We have a set of twins in our family and I have watched the joy and financial strain on the parents, especially the first year.

I have a couple of ideas for you.

How to Get HAMP Approval

1. I think you would benefit from attending a Making Home Affordable Local Community Event next time they travel to Southern Florida.

Of course, HAMP cannot be shopped among mortgage lenders. You can only apply to this program through your loan servicer. But getting to meet face-to-face with a company representative greatly increases your chances at getting approved for HAMP.

Watch my Mortgage Rate Blog for the scheduled dates and cities. I provide updates as more details are released. Don't forget to bookmark my blog in your favorites so you can easily return.

2. Learn about HAMP Tier 2. This is big! What can the expanded phase accomplish for the weak real estate market - and you - that the original Home Affordable Modification Program couldn't? Find out at HAMP 2 Loan Modification.

Expanded HAMP Tier 2 Requirements, Features & Benefits

New HAMP Tier 2 Mortgage Modification News - Helping more homeowners get affordable monthly payments.

How to contact Washington DC about the HAMP program - Your voice makes a difference!

Strong Credit Means More HARP 2 Approvals

3. While it is true that a lower credit score is less of a deal breaker with HARP 2 compared to the previous version, lenders are still going to analyze credit.

So since your son's credit history is the reason for your HARP denials, I suggest he finds out if erroneous or out-dated information is dragging down his credit scores.

I recommend using a well-established and legal service such as Lexington Law Credit Repair to learn about the effective and legal services that are available to homeowners. For example, in 2011 alone, Lexington removed 2,548,948 questionable negative items affecting their clients' credit!

Best wishes to you and your family,

Ask Kate

Question 2: 1st and 2nd Mortgage Refinancing with LPMI

By Steven in San Antonio, Texas

Kate, Can you refer me to an HONEST, reliable lender to help me combine my 1st and 2nd using an LPMI?

My desire is to pay off the 2nd because it has a balloon, and also take advantage of lower rates.

Loan-to-value is 90 to 95%
Credit history is excellent
Credit score is 729
Stable income and employment
Debt-to-income ratios are 24% and 42%
The house is 5 years old and purchased with an 80% 1st mortgage and 20% 2nd mortgage in 2007

Will any lenders allow me to keep my own escrow? I have not paid a mortgage lender escrow money for over 20 years. Steven T.

Ask Kate at Get-Your-Best-Mortgage-Rate.com
Ask Kate answers: 1st and 2nd Mortgage Refinancing with LPMI

Hi Steven,

I'm often asked for names of honest lenders or for companies with the best mortgage rates and lowest fees in specific home towns.

As you read yesterday, I told another homeowner that I empower you with my secrets to find and compare local lending professionals who are best suited to your individual needs.

Go to Part 1 Compare HARP 2 Mortgage Lenders for my secrets based on well over 20 years in lending.

Refinancing a Mortgage with HARP 2.0

Are you intending to use HARP for your refinance? If so, 1st and 2nd mortgages cannot be combined into one loan.

Depending on the terms of the 2nd mortgage, paying it off is generally not necessary. The lender of the 2nd will need to agree to subordinate their position to the new 1st mortgage using an approved subordination agreement.

If you are not currently paying Lender Paid Mortgage Insurance (LPMI) or Borrower Paid Mortgage Insurance (BPMI) on your 1st mortgage, HARP 2.0 plan will not require it, regardless of loan-to-value (LTV).

Traditional Mortgage Refinancing

If you intend to pursue traditional refinancing, LPMI availability varies among programs. So add "Which refinance programs using LPMI would benefit me?" to your list of questions for qualifying your lender.

Every HARP refinance quote I've seen includes real estate property tax and homeowner's insurance in the monthly house payments. If you are using traditional refinancing with a loan-to-value over 80%, it is standard to include them in the mortgage payment.

But I understand your concern. Many homeowners still prefer to pay property taxes and insurance premiums directly to counties and insurance companies.

Best wishes,

Ask Kate

Go here to Compare HARP 2 Mortgage Lender Part 1.

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