About the Author
Karen Deis is publisher of www.MortgageCurrentcy.com, the only e-zine that explains the mortgage rules and regulation changes in plain language so you can easily understand how they affect you and your loan files.
So, Here’s what we did…We asked MortgageCurrentcy fans “What do you want to know about HARP 2.0?”
It’s now posted on our website — and it’s FREE!
If you have other questions, please post them on the Facebook Fan page, because we are going to hold another class within the next few weeks!
I am trying to refinance with the new HARP 2.0 program. I have been calling various banks to figure out what the interest rate would be and also the closing costs. But every bank asks me for my SS # so that they can run a credit report before they can provide me with any accurate information. Is there any way around this? I don’t want my credit to get effected while I am just shopping around. Can you recommend some banks with reasonable charges in NJ? Also I was told that I can get better rates with Fannie Mae loan over Freddie mac, is that true?
Jay, no way around the credit score thing– because of what is called “risk-based pricing”. The lower the credit score, the higher the interest rate.
For HARP 2.0 program, you would not be able to choose between Fannie and Freddie–you can only refinance with the agency who bought your loan. So if it was sold to Fannie, you HAVE to refinance with Fannie (same with Freddie).
Rates are the same for both–but as I mentioned before, the rate is based on your credit score and lenders can’t give you a rate unless they know that.
The only way around that is to get a “mortgage FICO score” (has to be specific) from a credit bureau (Cost you about $50) and you can tell the loan officer/banker what your credit score is over the phone and who you ordered the credit score from, so they can validate that it’s accurate.
Sorry, don’t know of any companies in NJ.
Hope this helps, Karen Deis.
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Hi,
I am having hard time understanding the difference between actual balance on my loan vs. payoff amount for refinance.
I am trying to refinance with HARP 2.0 My current balance is about $233,000. The bank is telling me that my new loan amount would be about $234,000 assuming I pay closing cost out of pocket. They are saying it would be $234,000 because that i the payoff amount.
In my case, the monthly payment goes out on 5th of every month.
Example
I made a payment on March 5th, 2013. Does that go towards my February interest and principle?
Now if I were to close on March 31st. I understand that I would not be making any payment on April 5th so I still would have to pay for my March interest and principle in which case it makes sense that my loan new loan amount would be a bit higher.
Would it be the same case if I were to close on April 1st?
But what happens If I close on April 6th?
I would still be making payment on April 5th, in which case my March interest and principle would be paid off. Than why would be new loan amount go up?
I hope this is not confusing. I tried to be as much clear as I can. Please let me know if you need any further clarification.
Hope to hear back from someone soon.
Thank you
Good info. Lucky me I came across your blog by chance (stumbleupon).
I’ve saved it for later!