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What is a 125% mortgage? Is that HARP ?

by SimpsonP from Santa Rosa, California. Jun 24th 2013 Reply


Gus Jaleel (XceptionalMortgage)
#438 ranked lender in California - 3 contributions

yes it is

Jun 24th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

It is a harp loan in today's terms. What it means your property is overencumbered by 25% of it's value or it's worth less, by 25%, of what you owe on it.

Jun 24th 2013
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Dr. Shab Kavandi (skavandi)
#473 ranked lender in California - 53 contributions

yes it is!

Jun 24th 2013
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Rick Pelleriti (RickPelleriti)
#367 ranked lender in California - 59 contributions

If you need help with an underwater mortgage, even if it is over 125%, we have a program that allows for an unlimited loan to value, i.e., over 125%. The rates are the same as if you were under 105%.Feel free to call me at 530-205-9145, or e-mail me at rick@rickpelleriti.com.Best of luck...

Jun 24th 2013
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Jason Vondrak (jvondrak)
#221 ranked lender in California - 1,741 contributions

Yes, it is. We are located in California as well and offer the HARP program to underwater borrowers!

Jun 24th 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,588 contributions

The "125%" is referring to the "Loan to Value" or LTV.. HARP guidelines state you can refinance with "unlimited" LTV, however most lenders have overlays or additional guidelines that limit the LTV to say 125% or 150%.. .. 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 24th 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,588 contributions

The "125%" is referring to the "Loan to Value" or LTV.. HARP guidelines state you can refinance with "unlimited" LTV, however most lenders have overlays or additional guidelines that limit the LTV to say 125% or 150%.. .. 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 24th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,237 contributions

yes, that is what 125% referrs to now. (now 8-10 years ago there were other options...). The 125% may be misleading, in some cases there is no effective limit on the LTV if it is a HARP loan.

Jun 24th 2013
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Blake Kleckner (BlakeK)
#392 ranked lender in California - 257 contributions

It is HARP 2, a derivation and improvement of the original HARP program. Depending upon the lender, it's possible for your home to have an unlimited LTV and CLTV, that is, if you have a 2nd mortgage. Lenders' interest rates are higher for loans with higher LTVs because of the greater risk. Typically the breaks are up to 105%, 105.01% to 125%, 125.01% to 150%, 150.01% to 175%, and over 175%. Fortunately, we have many HARP 2 lenders, so we can accommodate any homeowner needing this exceptional loan. I would strongly suggest, though, that if you are considering refinancing to do so as quickly as possible. Interest rates risen dramatically since mid-May, and they probably will continue rise for the foreseeable future. That is not to say they still aren't terrific, but just not as good as they were. Depending upon the balance of your mortgage loan, you could easily realize a $250 to $1,100 monthly savings with a HARP 2 loan. 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 40+ quality lenders that offer more than 1,000 loan programs, we definitely have something for everybody.

Jun 24th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

When the mortgage(s) are 125% of the property value, there is more owed on the property than it is worth. A few years ago, borrowers with good credit could obtain a second mortgage for a total of 125% of the property value, thence the term "125% mortgage".

Jun 24th 2013
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Eric Vander Werff (Loanguy99201)
#87 ranked lender in Washington - 27 contributions

Hi, this really could apply to a Fannie Mae or Freddie Mac HARP loan but could also apply for FHA or VA streamline refinances depending on current values vs. current loan balances. Most of us can do unlimited LTV/CLTV Fannie or Freddie Refinances now, even if we aren't your current servicer. With regards to the govt loans, if you owe $200K on an FHA or VA loan today but the market value of your home is say $150K - we can help you refinance in most cases because there is no appraisal required to verify the current value. Hope that helps!

Jun 24th 2013
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Ed Craine (ecraine)
#356 ranked lender in California - 23 contributions

A 125% mortgage is one where the loan amount exceeds the value by 125%. It could be a HARP loan if it is for a refinance of a Freddie Mac or Fannie Mae owned loan. It could also be for a VA or FHA streamlined refinance.Feel free to contact us if you have questions specific to your situation.

Jun 24th 2013
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Manuel Gonzalez (mmortgage1)
#91 ranked lender in New Jersey - 89 contributions

125% mortgage is a mortgage that is 25% above the appraised value. It can qualify for Harp if your loan is owned by Freddie Mac or Fannie Mae

Jun 24th 2013
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Cesar Marin (CesarMarinHomeLoans)
#444 ranked lender in California - 2 contributions

Yes, Mr Simpson, it is HARP, a program that allows you to refinance even if your home worth less than you currently owe. If your loan was purchased by Fannie Mae or Freddie Mac on or before May 31, 2009 and you are current on your payments (or with only one 30 days late in the last year, or six months), you might qualify for the program. Please feel free to call me if you have questions or would like to know more about this program. I am a loan officer in Fountain Valley, CA, and you can call me at (714) 420-7941, or email me at cmarin@allwestern.com. And thank you for asking your question in this forum!

Jun 24th 2013
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Andrew Alfonso (CashCow)
#43 ranked lender in Florida - 271 contributions

If its a 2nd mortgage no. If not - YES. Andrew

Jun 25th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,875 contributions

There are no regular loans where the loan would be 125% of the appraised value... so it would have to be the special HARP (Home Affordable Refinance Program) www.HARP-Refinance-MN.com

Jun 25th 2013
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,821 contributions

In the "Good old days" there actually was a product called a 125% mortgage. It was generally a second mortgage that would allow a borrower to access a cash out loan that would allow them to use 125% of the home's worth. Today, however, the concept continues, but this would be a loan where you are refinancing out of one loan and into another, but don't have enough equity to do it with a traditional mortgage. Today, these are called HARP loans. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950.

Jun 25th 2013
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,821 contributions

In the "Good old days" there actually was a product called a 125% mortgage. It was generally a second mortgage that would allow a borrower to access a cash out loan that would allow them to use 125% of the home's worth. Today, however, the concept continues, but this would be a loan where you are refinancing out of one loan and into another, but don't have enough equity to do it with a traditional mortgage. Today, these are called HARP loans. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950.

Jun 25th 2013
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