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HARP 2.0 through current lender is a little more than $10k to close

Current lender will so kindly add the $10k into the new mortgage total. We are extremely upside down. Guestimate on house value can be $295 - $330 with anybody's guess as to what is real. Zillow says $309K. Current loan balance is $406K. Lowers our payment about $350 a month but will take more than 18 months to recoup the outlay and it's in the balance now so it is much more than $10k when all is said and done. I thought fees were capped at .75% per $100k on 30 year fixed. Is that not around $3k? My husband really wants to do this loan for the cash flow. I don't think they are doing us ANY favors. We are in Maryland and trying to find a reputable lender who can do something realistic but there are too many options. current rate is 5.75 - new rate would be 4.75. Thoughts? Many thanks. by dmdill_419_818 from Monrovia, Maryland. Apr 5th 2012 Reply


Chris Milker (cmilker)
#34 ranked lender in Colorado - 5 contributions

Dear Monrovia, MD,I think the interst rate is high. I do not know about the overall expense of the fees. What do they include? I think it would be prudent to get a second opinion on rate and fees. You can't go back and redo HARP again. Regards,MD licensed

Apr 5th 2012
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1% origination fee. Processing fees, Underwriting fees, Title fees ($650) - I'm at work so paperwork not with me but there are a number of large, ambiguous fees that translate to junk fees to me. They already have the loan. They're making $10k plus whatever the other side pays them AND they keep the loan at a higher amount owed.

Apr 5th 2012
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Lynn Bossi Kinsel (LynnKinsel)
#39 ranked lender in Virginia - 61 contributions

More information needed to determine what makes up the $10K they want to finance into the loan. I am a licensed loan officer with Patriot Mortgage, a licensed mortgage broker in Laurel, MD. Call me and I know we can get this done for you at a lower rate and lower closing costs. Lynn @ 804-677-8588 (c)

Apr 5th 2012
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Chris Milker (cmilker)
#34 ranked lender in Colorado - 5 contributions

When you get a chance to look at the paperwork, it will be important to know the costs exactly are. Does the fees include monies for escrows (taxes and insurance)? I can help you break it down, if you would like. That way you can understand the process better.

Apr 5th 2012
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Credit scores are between 650 and 700 I believe. (+/-). Possibility for the higher rate? $414, 200 loan amt. Underwriting fee $ 495 Flood cert $10 Prelim interest $646 PMI MIT escrow $415 settlement Fee 650 Tax fee $75 Orig fee $4142

Apr 5th 2012
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Will have more correct info when I get home this evening. Daughter (15) is trying to read the #'S but can't find GFE. She was able to unearth a few though.

Apr 5th 2012
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Natalie Loudan (nloudan)
#44 ranked lender in Virginia - 5 contributions

Monrovia, MD. My office is in Winchester VA and we have several branches in Maryland. Without seeing the details in the paperwork you are reviewing, it is hard to guess. I would be happy to review your paperwork and give you a second opinion at no charge. I agree that you need to make certain you complete this loan process the right way the first time. Please feel free to call me with any questions. 540-450-2700 or you can reach me by email at nloudan@primelending.com

Apr 5th 2012
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Angela Tucciarella (angela)
#13 ranked lender in Maryland - 6 contributions

You absolutely can get a Harp 2.0 wth closing costs less than 10K. Our company doesn't charge any origination points. The only fee you pay is the escrow set up and the title fees. Depending on your annual hazard and taxes. You are probably looking at 5-6K at the most. Please feel free to contact me @ 443-610-2442. I look forward to hearing from you!!

Apr 5th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Without seeing the complete proposal, it's hard to say but in general, you're paying too much.. Under HARP 2.0 you cannot finance more than $5000 in costs, so I would check your numbers just to be sure.. 2nd, it looks like the rate is high as well.. My guess is that your getting quoted from your current lender or a "Big Bank"... and that's your biggest mistake... contact a LOCAL mortgage broker, not the bank, and not one of those 50 states internet lenders... the local broker will always have lower costs and better rates.. plus he has access to numerous lenders where he can find the right match for your particular scenario.. WilliamAcres.com

Apr 5th 2012
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Linda Miller (Linda Miller)
#2 ranked lender in Utah - 568 contributions

You need to get a second opinion. $10,000 might not be high if that includes the escrows for your taxes and insurance. In Utah where taxes are relatively low, taxes can add $2,000 - $3,000 to the settlement costs - but you will get a refund from your existing lender the funds you have in your escrow account. Some borrower prefer to pay the escrow funds since they will be getting most of it back. Some people don't want to bring anything to closing so they roll the escrow into their loan. 4.75% seems high to me - but more information is needed. Interest rates is determine by credit and loan to value. You should contact one of the Lender 411 mortgage professionals and give them the specifics about your situation. I am sure they can help you out. Good luck, Linda

Apr 5th 2012
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Thank you all so very much for your opinions. I am at work right now but will be making a few calls tomorrow morning for further possibilities. Truly great resource. I look forward to talking with you - and again, thank you.

Apr 5th 2012
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Gene Neal (eneal@athccorp.com)
#31 ranked lender in New York - 273 contributions

Put on your shoes and run that rate is too high. If you're looking for an honest breakdown and best case scenario contact us.

Apr 5th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

RUN! Run as fast as you can AWAY from these guys. Cap or no cap, these fees are too high. You should be looking at closer to 4.5 with no Origination/Discount. You will have to pay other fees, like Underwriting, Processing and Title and fresh funds to your impound account, but no way $10K, and certainly not for 4.75. Contact a local Mortgage Banker /Broker. DON'T use one of the big banks, DON'T use one of the big national Mortgage factories, and DON'T use the people you are currently making payments to. A big benefit is that your local Mortgage Banker has access to all the lending sources, allowing for an easier fit into the lender or program that makes the most sense. Whoever you choose, make sure you check them out at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Apr 5th 2012
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

I do harp loans in about 25 states. My fees are $895 and title fees, and the rates are in the low 4's call me at 602-330-1598 linda

Apr 17th 2012
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