HARP Refi Program: Rates, Roofs, and 2nd Mortgages
by Margaret from Sarasota, Florida and by Kathleen from Florida
Ask Kate about the HARP refi program - rates, roofs, and 2nd mortgages: Margaret thinks she understands HARP refinance guidelines but wants the straight scoop from me! Kathleen was inundated with offers for HARP yet was told because her home is situated on leased land, she isn't eligible! So she asks how to get her hands on a copy of HARP guidelines to determine if she's being told the truth.
Ask Kate: HARP Refinance, Home Improvements, 2nd Mortgages, Loan Terms By Margaret A. from Sarasota, FL
I think I know the answers to my questions but would like to hear them from you!
1. Can the cost of a new roof be included in a HARP refinance?
2. Can you pay off a 2nd mortgage by rolling it into a HARP loan?
3. Can you do only a 15 year HARP or also a 20 year and 30 year term?
Kate's Answer: HARP Refinance, Home Improvements, 2nd Mortgages, Loan Terms
It's good to get a reading on loan guidelines from an independent source.
That's what my website is all about! Thanks for asking your questions.
Margaret's Question: Can the cost of a new roof be included in a HARP refinance? Kate's Answer:
Neither the original version of the Home Affordable Refinance Program (HARP) nor the 2012 revised version (HARP 2.0) allow home improvements or consumer debts to be rolled into the new loan amount. Only the current mortgage balance plus closing costs can be included in a HARP refi.
In other words, HARP is a no-cash-out (aka rate and term) refinance program. Educate yourself on HARP closing costs before you begin the refi loan process.
Margaret's Question: Can you pay off a 2nd mortgage by rolling it into a HARP loan? Kate's Answer:
No 2nd mortgages are allowed to be paid off in the HARP refinance.
See Ask Kate: HARP 2 Refinances and 2nd Mortgages
for answers to these questions... Do you know about refinancing with HARP if you have a 2nd mortgage? Can you roll the two together into one loan? What does subordination mean? Why wouldn't a 2nd mortgage lender cooperate with the HARP refinance?
Speaking of cooperation, homeowners with 2nd mortgages should know that their HARP refinance process will require an extra step, one with the potential for pitfalls.
See Ask Kate: HARP Refinance Made Impossible
for my answers to Joe's questions... I need to get a letter of subordination. What can I do to move things along? How does the new administration expect people to take advantage of these new programs if the banks are conducting business this way.
Margaret's Question: Can you do only a 15 year HARP or also a 20 year and 30 year term? Kate's Answer:
Underwater homeowners who hope for a 15 or 20 year term will be happy to know that one HARP eligibility requirement concerns reducing the length of the loan. However, this does not preclude opting for a 30 year fixed. Even so, there may be bigger fish to fry!
See Ask Kate: HARP 2 Refinancing and Interest Rates
for my answers to Redline's questions... What I find most disturbing is that they are offering me the same rate whether I go with 30yr fixed or 20yr fixed and told me that 15yr fixed is not even an option with HARP2
HARP 2.0 Eligibility Requirements, Guidelines, and Expiration Dates
There's seemingly no end to restrictions in the Making Home Affordable Refinance Program. So I created an easy-to-read overview of eligibility requirements and common guidelines to cut through the confusion, including program expiration updates.
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