Home Affordable Refinance Program

by Paulo

Regarding HARP - Home Affordable Refinance Program: Looking to take advantage of HARP, with my current situation involving a 1st position 30 year interest only mortgage on $420,000, and a 2nd position on $130,000 which is on a variable rate currently 5.5%. My appraisal came in at $385,000.


My bank has told me that I would need to make up the loan to value difference which is around $15,000 and also pay points of 1.25% on a rate of 5.375% for a loan of $405,000 (which will replace my current 1st mortgage)

Does coming up with the $15,000 to make up the loan to value difference and $3,000 in points make this a good deal?

Or, should I wait for the recent revision with the HARP program, and take advantage of the increase in loan to value with 125%?

Kate Answers: Home Affordable Refinance Program

Dear Paulo, When it comes to the Home Affordable Refinance Program or any other mortgage program, options need to be weighed.

If you have the cash to spare, are satisfied with the mortgage payment, and have a firm commitment from the lender to close the refinance immediately, that is one option for you to consider.

However if you do not have available cash to close a refinance, another option would be the 125% addition to the Home Affordable Refinance Program. Moreover, be sure to calculate the new payment based on 125% loan to value to see if it is lower than your current obligation.
h3>Sidebar on Home Affordable Refinance Program Have you ever wondered how lenders calculate mortgage payments? Stop wondering! You can calculate mortgage payments too. Go to Mortgage Rate Calculators for an easy free calculator right here on my site.

Paulo, only you can decide which is the good deal. There are many details to your situation that only you know. So consider the pros and cons carefully. Required cash, differences in mortgage payments, how quickly the refinance can close are examples of important considerations.

Home Affordable Refinance Program - Pros And Cons

Making a list of pros and cons helps many homeowners in the decision making process. As with any financial decision, I urge you to consult a trusted financial adviser such as a CPA.

Is your mortgage refi worth the cost? Here's some help to figure a break even point. Next, check out the uncommon refinance information at the bottom of this page. By all means, please let me know if you have more questions.

Take a moment to bookmark Home Affordable Refinance Program to your favorites and visit often for more refinancing advice. You can also invite friends to comment on this page or ask another question of their own like you did.

Visit Best Mortgage Rates And Refinancing Advice for solutions based on inquiries from other Contributors just like you.

Best Wishes,


P.S. Check out Best Mortgage Rate Blog yourself! It's an entertaining source of mortgage information. Subscribe now to the RSS feed.



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Home Affordable Refinance Program Update
by: Kate Ford

Pat, Doing some research on the Home Affordable Refinance Program today, I came across this. Freddie Mac is allowing changes to title during a HARP refi.

Adding a borrower - Home Affordable Refinance Program

"A borrower who is not on the mortgage being refinanced may be added, provided at least one of the existing borrower(s) is retained. A non-occupying borrower may not be added to a mortgage secured by a primary residence."

Or going the other direction...

Omitting a borrower - Home Affordable Refinance Program

"A borrower on the mortgage being refinanced may be omitted from the Relief Refinance Mortgage for any reason, provided that the omitted borrower is removed from the deed and does not retain any ownership interest in the mortgaged premises."

Hope that helps,
Kate Ford (Ask Kate)

Can't add me to new HARP mortgage?
by: Pat

Not in trouble with payments but want to take advantage of new lower rates (we are at 6.5 percent). Wells Fargo says because only my husband is on current mortgage, we can't add me and go with HARP.

Husband has new motor vehicle loans in his name now so doesn't qualify on his own. So we are out of luck.

Is this true, that with HARP they can't add a spouse in refinancing? Their other option only allows refinancing of 97 percent and an appraisal we got in December was about $1,000 less than what we owe. Ugh.

From Kate Hi Pat, Yes, to the best of my knowledge, the requirements for HARP are pretty restrictive when it comes to title.

Have you considered refinancing the truck in your name? Ask the lender if your husband could qualify for HARP without the truck payment.

Best of luck. I would wish away your ughs if I could! Let me know how it turns out. Kate

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You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

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