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HARP 2 Refinance

I am currently working with a local broker to get refinance with HARP 2 program. He offer me 4.125% rate. But after I found out that Bank of America is also able to help me to get lower interest rate for 4.625%, I feel hesitated. Because my current loan lender is BOA, I preferred to stay with BOA for the refinace, but the rate is high. Moreover, there is no appraisal needed with BOA, but appraisal is needed with the local broker. Can I have some advice whether I should go with the local broker?Thank you very much. by xiulin_544_225 from Camarillo, California. Jun 5th 2012 Reply


Bert Carpenter (BertCarpenter)
#0 ranked lender in Arizona - 1,894 contributions

Why in the world would you be willing to take an interest rate that is a half point higher just to "Stay with my current lender"? BofA obviously doesn't value you as a customer or they would have offered you the better rate. They didn't, because they don't. Even if your financial lice was such that you had to walk into a bank and pay the mortgage payment in cash, you would be thousands of dollars ahead taking the lower rate and buying money orders to mail your payment. Under HARP, an appraisal MAY be required, but the value on the appraisal does not impact the approval. Even if the appraisal were to cost you $1,000, and it won't, again, you are way better off ditching the bank.My advice is to ditch your bank and go with the Better offer. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Jun 5th 2012
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William J Acres (William_Acres)
#0 ranked lender in Arizona - 8,727 contributions

This is a reoccurring issue i see over and over again.. The big banks taking advantage of their own customers.. It's insane to even consider staying with your current lender just as convince, when it clear that better deals are out there.. Depending on the size of your loan, it could be thousands more to stay with BofA.. If the new lender requires an appraisal, then that's only $450 to $500, Vs paying thousands more in interest over the life of the loan.. Stay with the broker.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jun 5th 2012
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Jonathan Rhode (jrhode)
#0 ranked lender in California - 130 contributions

I agree with BertCar. There is no advantage of going with B of A for this transaction. I personaly have aquired a great deal of business from people who were tired of waiting on B of A to process their paper work. Currently my rate on this program is at 4% so, why would you want to take a rate that is .625% higher to save on the apprasial? You will make up for the cost in a few months and then realize a much greater savings over the life of the loan.. I will probably be thousands!

Jun 5th 2012
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Larry Gray (lgray_312_247)
#0 ranked lender in California - 1,139 contributions

My perspective is there are a number of good loan servicing banks. The owner of your HARP2 loan will continue to be owned by eitherfannie mae or freddie mac. It is understandable you like the servicing of your current lender so why not have it continue you with them?I have to agree with everyone who has responded thus far...take the best deal as long as you know what the costs are on good faith estimatesfrom both! If costs are comparable and the one offers 4.125% then by all means, that is the way to go! We are pretty big direct lenders and doHARP 2 loans, but some of my really high loans to value (over 125% loan to value,) I must broker also. I might be able to do 4.0% on this one!

Jun 5th 2012
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Ken Burrows (mortgagesforamerica)
#0 ranked lender in Nevada - 572 contributions

We can go 3.90% on today's rates. Yes always go with the lower rate. Contact me if I can be of assistance. 888-320-7888 - www.MortgageWholesale.net - Ken

Jun 5th 2012
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Janet Chavez (janet@commercialct.com)
#0 ranked lender in Connecticut - 6 contributions

Go with the lower rate. You will save a lot more money in the long run.Janet

Jun 5th 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#0 ranked lender in Florida - 2,244 contributions

You should definitely go with the lower rate. Your loan will still be owned by Fannie Mae or Freddie Mac and your new servicer will be just fine. You should get a much quicker closing as well by going with the local broker. If I were you I would be more upset with bank of America for not even trying to compete for your business. All the best, Michelle

Jun 5th 2012
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Shaun batin (loanleaders)
#0 ranked lender in California - 8 contributions

We can get you as low as 3.99% 30 Year Fixed. We do not require an appraisal but we need to get an appraisal waiver from Fannie Mae. Call me and I am more than happy to go over your options.Thanks and have a great day.Shaun BatinLoan Leaders of America888-834-1988 Ext. 159

Jun 5th 2012
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Sean Graves (sean.graves)
#0 ranked lender in California - 2 contributions

Simple.The $400.00 or $500.00 appraisal will be basically paid for in the savings you get within the first two years of the loan. .5% on just $150,000.00 is $750.00.Switch lenders, save the .5%. At just a $150,000.00 loan amount, this is about $22,500.00 in savings over the life of the loan.

Jun 5th 2012
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Todd Tholl (toddtholl@leader1.com)
#0 ranked lender in Iowa - 239 contributions

take the lower rate & pay for the appraisal

Jun 5th 2012
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Blake Kleckner (BlakeK)
#0 ranked lender in California - 261 contributions

If your loan is, say, $250,000; and you can get it done at 4.125% you will save $73/'mo. compared to doing it at 4.625%, which means if the appraisal is in the $400 realm, and it should be unless it is wavied, it will take you less than 6 months to recoup this cost. After that, you will continue to save $73/mo. for as long as you have the loan. Of course, if your loan is more than $250K, it will take you less time to recoup the cost, and vice versa. Even if your loan is only $125K, you should recoup the appraisal cost in less than 12 months. Go with a broker, local or otherwise, unless the broker doesn't have enough lenders to give you the best possible loan choices. I work with clients all over CA, and my office is in Pasadena. Distance shouldn't matter, especially considering that the mortgage business is almost entirely internet based, and all communnications are over the telephone or email, so proximity to a broker really shouldn't be an issue. I have a doc signing on Thursday with clients in Paso Robles, and 1 in a few weeks with clients in the San Francisco area. For all intent and purposes, Camarillo, being only an hour away, is local compared to where most of my clients live, and I go to all of my doc signings regardless of where they are in the state. The most important factors your need to consider when choosing a loan officer are service, competitive interest rates/loan costs, and your belief that he or she is extremely loan savvy and will deliver your loan as promised in a timely manner. To get the best possible interest rate & loan costs, stay away from working directly with banks. They take tremendous advantage of borrowers because they know they can get away with it, which, way more often than not, they do. I just did a HARP 2 loan for a client who had her loan with Wells Fargo Bank, so she was going to do it direct. WFB just happens to be a lender of ours as well. Believe it or not, I was able to get her a lower interest rate, saving her $30/mo., and do her loan at no cost, which saved her $3,000. Give me a call 16/7, or email me your phone number so I can call you, 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.

Jun 5th 2012
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#0 ranked lender in Florida - 796 contributions

no-brainer, if the appriasal fee is the only big difference .5% is approx 500 bucks savings per 100k per YEAR...

Jun 6th 2012
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I'm a California Loan Officer closing these HARP 2.0 loans at http://www.mortgagewholesale.com. ALWAYS, ALWAYS start with a mortgage wholesale broker. First, several months after your loan closes, it will be bundled with hundreds of other mortgages and resold on the secondary market to one of the "big banks" and you could end up making your payment back to BofA. Second, if a problem does arise during the refinance process a mortgage broker will have more options, less fees and lower rates. I'm doing these with little to no money out of pocket for borrowers. Give me a call: 661-333-1181 or http://www.mortgagewholesale.com I'd enjoy an opportunity to help.

Aug 3rd 2012
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