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HARP 2.0 - If I refi will I have to carry PMI & what is avg cost of PMI?

Howdy,It appears the wife and I will be eligible for HARP 2.0 but was wondering if we would have to carry PMI and what typically costs?Just some quick details:Current home value approx $230 - 240KBalance owed on loan $284K (30yr Fixed %5.875, 23yrs, 8 Months left)Freddia Mac Owned, serviced by the evil empire known as Bank of America.Never missed or late on a payment.Both our FICO's are in 760 - 790 range.Origianl loan never had PMI attached and still does not.So, our objective would be to refinance the $284k into a 15yr loan and just rough calculations/internet show our payment would be about the same or increase slightly. However, if we have to pay PMI then obviously the monthly payment would increase to where we may not consider it. So, on this type of loan do we have to pay PMI until the LTV etc reach a certain limit?Thanks again for the help. by gregor_444_185 from Sacramento, California. Mar 13th 2012 Reply


Donald LaPlume (dlaplume)
#6 ranked lender in New Hampshire - 47 contributions

Hi Gregor_,Since you currently do not have PMI you will not need to have it in your refinance. Since there is a limited pool of investors writing Freddie Harp 2.0 loans it is important that your lender have access to as many of these investors as possible to provide the best terms in the market for you. One of the key issues to watch out for if you are going from a 30 year to a 15 year is a payment increase of 20% or more. From your message it seems that this would not be the case. However, if you do it does add a few extra hoops to jump through. Should you have any questions please do not hesitate to call me at 603-543-3700 ext 1. Not only do we do the HARP 2.0 loans we do it through many investors.Wishing you all my best,Don LaPlume

Mar 13th 2012
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Joe Metzler (JoeMetzler)
#19 ranked lender in Minnesota - 3,981 contributions

HARP really has two main benefits. 1) If your existing loan doesn't have mortgage insurance, your new loan will not need mortgage insurance. 2) Allowing for higher loan-to-values. Other than those two items, HARP 2 is basically a standard loan, and you will have to meet all other standard loan guidelines. Credit scores, debt-to-income ratios, etc. In MN and WI, visit www.HARP-Refinance-MN.com for more info

Mar 14th 2012
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Scott Lawson (amhloans1)
#275 ranked lender in California - 7 contributions

If you don't currently have PMI, you will not need it on the new loan using the HARP 2.0. You will need to qualify using the Open Access product since it's Freddie owned. Not all lenders will offer this--but I do. Please give me a call and we can discuss the details. Scott Lawson--America's Home Loans 707-763-7900

Mar 13th 2012
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Curt Tiedeman (curttiedeman)
#46 ranked lender in Washington - 28 contributions

HARP 2.0 will help you without PMI. We take the original closing statement from your existing loan to prove that the loan does not have PMI. When we run the loan through Freddie Mac's automated underwriting engine it will confirm that you don't have PMI as well. We lock your loan based on Freddie's adjustments and close the loan without PMI. You should see a nice savings and since you have 23 yrs left, you might look at going 20 yrs.Thanks and let me know if I can help. www.WAharp2.comCurt Tiedeman425.988.2501www.1ratemtg.comc.tiedeman@1ratemtg.comYou can apply online at: www.CurtTiedeman.comFirst Rate Mortgageis a DBA of Sierra Pacific Mortgage, Inc.WA Lic: MLO-35554CA Lic: NMLS 35554

Mar 13th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

Based on the rules, you should NOT be required to purchase PMI. Work with a local Mortgage Banker/Broker, rather than one of the big banks. They will have access to the loan products of many lenders, not just those of one bank. This will allow you to get the best possible deal. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Mar 13th 2012
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Blake Kleckner (BlakeK)
#386 ranked lender in California - 258 contributions

Hello Gregor: Based upon your $284K loan balance, 5.875% IR, 23 years, 8 months remaining on your loan, and assuming you have only made P&I payments on your current loan from its inception (no extra payments towards the principal), your original loan balance was approximately $313K. If this is correct, your monthly P&I payment is presently $1,852/mo. Is this about right? If so, it's not possible for you to achieve this payment with a 15-year loan because the IR would need to be about 2.175%, which is not even close to what's available today. However, depending upon how much of the loan costs you are willing to pay, you could get a $284K, 15-year loan at 2.875% (based upon yesterday's interest rates) with a $1,944 monthly payment. If this payment fits your definition of "increase slightly," then I would be happy to do your loan for you, and complete it in roughly 30 days without having to wait for HARP 2 to completely kick in next month. With the tremendous volume of refinances that will, unquestionably, be generated in the next 30 days because of this incredible loan program, who knows where the interest rates may be in mid-April? We have some lenders that are ready to go right now predicated on your home's FMV being $230K to $240K. Of course, you will have to qualify for the loan but based upon what you have stated in your question, it appears that you should.Give me a call 16/7, or email me, and I'll be happy to walk you through the process. To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. Representing 39 quality lenders that offer more than 1,000 loan programs, we definitely have something for everybody.

Mar 14th 2012
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Terry Blete (tblete_159_755)
#584 ranked lender in California - 5 contributions

You will not need MI insurance for a new HARP 2.0 loan based on the information you have provided. There is no minimum credit score requirement. Based on a loan amount of $240,000, today's rate for a no cost loan (all non-recurring costs will be paid from a yield spread premium) on a 15 Year fixed rate mortgage is 3.625%, 45 day pricing. Your monthly payment would be $1,730.49 per month, slightly higher than your current monthly mortgage payment of $1,679.97. The benefit is you will be able to pay your house off 8 years and 4 month earlier. This equates to a savings of over $150,000 over the life of the existing loan compared to the new 15 year term.Another major component of the HARP 2.0 loan program, is the bottom debt to income ratios (DTI). One of our lenders recently got approval for a DTI of just under 65%. You will need to furnish full documentation, current paystubs and the last two years W-2 and/or federal tax returns.Assuming a borrower qualifies for HARP 2.0 and has MI insurance, MI insurance will be required on the new loan. The borrower will need MI Company name and the current certificate number. The cost for MI is 1.1% of the loan amount. There are also unlimited LTV/CLTV/HCLTV limits. All occupancies are accepted. High balance loans are accepted at TODAY's high balance limit for that particular area. Please refer to our website @www.greaterbaymortgage.com to learn more about the HARP 2.0 program or call us at 1-800-890-1500. We look forward to serving you.Regards,Terry A. BleteBroker/OwnerGreater Bay Mortgage Company

Mar 14th 2012
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