Are you eligible for the Home Affordable Refinance Program (HARP)? The Home Affordable Refinance Program, as you may know, will allow you to refinance your home up to 125% of the current value of your home. Last Friday, a past client contacted our team at Mortgage Reel and inquired about the HARP. Their current lender/servicer contacted them regarding a possible refinance under the HARP; unbeknownst to them, they believed the only option to refinance was with their current lender. Unbelievably, the current lender was offering them a rate of 5.5% with no points or 5.375% with 1 discount point (equal to 1% of loan amount). Presently, a rate of 5.375% does not even exist on today’s rate sheets (currently a range of 3.75% – 4.5% based on your credit qualifying). Investment homes are eligible as well.
“So what should I do now?” First, be informed about what programs are offered by your Loan Originator or Loan Officer. Eligibility under the Home Affordable Refinance Program is not dictated by your current lender/servicer. Ask questions, shop around and be informed about current refinancing rates specific to your needs and lending scenario. Please contact us or post comments below.