Mortgage Company Called Offering Re-Fi (HARP?)

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Mortgage Company Called Offering Re-Fi (HARP?)

Tommy Barone
Narragansett, RI · Member since 2017 · 13 posts · 0 votes

Hey guys, need help since it's the weekend and need to figure stuff out by opening tomorrow am...

My lender (PNC) called to let me know I can streamline refi my existing mortgage based on, I believe, some kind of expiring HARP option. They said my mortgage PITI would go down about $100/mo based on refi as an investment property (in case something else pops up that I want to buy) and the approx $1200 closing costs would be rolled in, still saving $100/mo PITI.

What is this all about?

Is it legit or a marketing thing?

Will that $1200 CC cover all the attorney/title fees?

Will I be marked as a modified/delinquent loan?  

Will this affect my ability to get a loan soon after for another [investment] property?  

Sounds like one of those credit card or refinance flyers you get in the mail.  Every month.  I was told that we need to hurry because the program ends right around when the closing would happen since it takes about 2 months they said.  I should also note that 10 years ago I had my mortgage modified due to hardship.  That's "off my record" now.  

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Quan NguyenPro Member
Real Estate Broker / Property Manager · San Diego, CA · Member since 2017 · 3 posts · 1 vote
9y

@Tommy Barone the loan mod you did in 2007 should be at a lower rate.   If not and it being that long ago,  you can apply for a regular refinance.   You do not need HARP.   HARP is mainly used if your house will not appraise above your loan amount.   

If you plan on buying another property.  You should refi to get the lowest payment so you can easier qualify for the next loan.   ( unless your income is high)  In my opinion you should always refi for the longest term to make your monthly obligation as low as possible in case of rainy days.   You can always pay more monthly to shorten the term, if you have excess $.  

You can also find loan programs with very little closing cost but the rate will be higher.   

compare loans with just PI not PITI some lenders might miss quote because of your property tax and insurance. The refinance will only change the PI taxes and insurance will be the same with whichever lender you choose.

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  • Melvin ListBusiness Member
    Lender · Tampa, FL · Member since 2016 · 1k+ posts · 381 votes
    9y
    Tommy Barone Harp is a legitimate program. HARP will not hurt your credit in any way. I would shop it out with other lenders before deciding to stay with you current lender.
    C2 Financial
    WebsiteView Page
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  • Tommy Barone
    OP
    Narragansett, RI · Member since 2017 · 13 posts · 0 votes
    9y

    @Melvin List is that because it's not actually my broker offering it, so technically, I can just shop around and ask anyone since it's federally qualified?

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  • Melvin ListBusiness Member
    Lender · Tampa, FL · Member since 2016 · 1k+ posts · 381 votes
    9y

    @Tommy Barone yes any lender should be able to help you with a HARP refinance with out an  appraisal.  

    C2 Financial
    WebsiteView Page
    0Reply
  • Harjeet BhattiPro Member
    Lender · Glenview IL- CDLP NMLS#230554 · Member since 2015 · 2k+ posts · 747 votes
    9y

    Did you modify same mortgage?

    0Reply
  • Brent Coombs
    Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    9y

    @Tommy Barone, here's an earlier thread on the topic:- https://www.biggerpockets.com/forums/99/topics/462...

    @Kyle J. wrote: ..."I'm not sure how you'd use it "for REI". It's not a program for new loans". How does that line up with your "based on refi as an investment property (in case something else pops up that I want to buy)" comment?

    The first question I would ask them is: how much LONGER will it take for the loan to be paid off (vs currently)? Cheers...

    0Reply
  • Tommy Barone
    OP
    Narragansett, RI · Member since 2017 · 13 posts · 0 votes
    9y

    It would be for the same exact 20 years I have left, yes this loan was originally modified in 2007 during a layoff in hardship.  

    The investment comment was because if it was an owner occupied required loan refi, if I find an investment property that I want to purchase this year I won't be able to use an owner occupied FHA (for example) loan for a new property, because I would have another owner occupy loan out there. It would be hard to prove otherwise - Just makes it easier and more legit and for 1/4 of a percentage more it's worth it to me.

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  • Brent Coombs
    Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    9y

    @Tommy Barone, regarding that "1/4 of a percentage more", is the resulting Interest Rate STILL lower than what you've been stuck with since 2007? Appears to me that, despite your Lender's "layoff in hardship", doesn't it seem curious that they've waited until NOW to approach you with the Offer of a (much!) lower Interest Rate? How many MILLION Borrowers are there out there still suffering the same 10 years of ignominy? (And to add insult to injury, they expect your Application to be handed in by next month, otherwise they say you'll FAIL forever thereafter to receive such a generous prize from them?) And, are you REALLY going to move soon, just so you can apply as a "new" FHA-approved customer?

    My instinct suggests you should NOT agree to the extra 1/4 percent, unless you're GENUINELY looking to move soon anyway! (The only caveat I have about that is: UNLESS that 1/4 percent extra might NEVER be otherwise available to you as your Investment Interest Rate. It's likely to be very hard to convince me of the truth of that).

    How about: if you can readily afford those extra dollars per month, either make them as extra "Principal-Only" payments, or, set up a new "For-Investment-Only" savings account to acquire sufficient deposit/s for your investment ambitions?

    Remember, after one move, you'll be no better off under this (closed off) HARP deal than you could be with any FHA-approved Lender's loan product, right? Importantly, would your own home represent a superb Investment vehicle to keep, once you move? Because if it turns out that you'd be better off SELLING it once you move (which you should be able to gauge fairly well, even now), then that's MORE reason not to pay the extra 1/4 percentage in the meantime, right? Cheers...

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  • Tommy Barone
    OP
    Narragansett, RI · Member since 2017 · 13 posts · 0 votes
    9y

    So the hardship refi was ten years ago. They sent mailer out because I believe there's a timeline with HARP. The resulting rate is 4.5, compared to 5.25. The PITI is $100 less and the remaining note is the same amount of years owed.

    Currently having another lender friend of mine run a report to see if they can do the same streamline for a better rate. If not, still a seemingly decent deal.

    0Reply
  • Quan NguyenPro Member
    Real Estate Broker / Property Manager · San Diego, CA · Member since 2017 · 3 posts · 1 vote
    9y

    @Tommy Barone the loan mod you did in 2007 should be at a lower rate.   If not and it being that long ago,  you can apply for a regular refinance.   You do not need HARP.   HARP is mainly used if your house will not appraise above your loan amount.   

    If you plan on buying another property.  You should refi to get the lowest payment so you can easier qualify for the next loan.   ( unless your income is high)  In my opinion you should always refi for the longest term to make your monthly obligation as low as possible in case of rainy days.   You can always pay more monthly to shorten the term, if you have excess $.  

    You can also find loan programs with very little closing cost but the rate will be higher.   

    compare loans with just PI not PITI some lenders might miss quote because of your property tax and insurance. The refinance will only change the PI taxes and insurance will be the same with whichever lender you choose.

    1Reply
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