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  1. #1
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    Default HARP loan question ~ pros and cons

    Our bank contact us about refinancing our mortgage under a HARP loan. Has anyone done this? What were the pros and cons? Our understanding is that our bank will be paid up front for the current amount of our loan and then will be servicing the loan on behalf of FannieMae. So we get why they called us as they get their $$ up front plus continue to manage the mortgage and collect fees.

    A co-worker told DH that he was concerned that it could affect our credit score. We have not been able to find anything on-line to suggest that it would affect our credit. The co-woker did not have any specifics only that he was concerned for us.

  2. #2
    roobee is offline Silver level (200+ posts)
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    My understanding is that it isn't a HARP loan, but rather a HARP program that allows people to refinance even if they owe more than their home is worth. The program also allows you to take advantage of current low interest rates.

    There's nothing special about the loan that would show up differently on a credit report. You need good credit to qualify for the HARP program. http://www.makinghomeaffordable.gov/...ages/harp.aspx

    I've been the victim of "helpful" co-workers and relatives before - telling my exH that we would be subject to capital gains taxes when selling our house grrr
    Last edited by roobee; 03-04-2013 at 12:05 PM.

  3. #3
    AnnieW625's Avatar
    AnnieW625 is online now Black Diamond level (25,000+ posts)
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    I sadly don't qualify even though I have a garbage loan because my loan is not backed by Fannie Mae or Freddie Mac. If I could I would definitely take advantage of the program. Good luck!
    Annie
    WOHM to two wonderful little girls born in April
    DD E, 8
    (Frontier 80 booster, Graco Turbo high back, & a Harmony Cruz)
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    baby 2, 4-2009 (our Tri-18 baby)

  4. #4
    ahisma is offline Emerald level (3000+ posts)
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    We refinsnced under the Harp program and were quite happy. The process did take a long time, even though we used an existing lender that has been pretty efficient in the past. I'm not sure if that was related to the Harp program or just the timing.

  5. #5
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    We refinanced under HARP and had no issues. There was no impact to our credit score.
    Mommy to my little bear cubs DD1 and DD2- 4/2010 and 4/2012

  6. #6
    kbud is offline Platinum level (1000+ posts)
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    We refinanced under the first Harp (considered Harp 1 now). It's not a loan. It's a federal program that allows homeowners who are underwater refinance to take advantage of the lower interest rates. Ours went very quickly and there is no impact to your credit. There are specific requirements though.

    http://www.makinghomeaffordable.gov/...ages/harp.aspx

  7. #7
    cntrymoon2 is offline Platinum level (1000+ posts)
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    We refinanced under HARP 2 through Chase. Chase has a program where they paid all closing costs and send someone to your home or office to do the closing. It was easy as can be and saved us about $400 a month.

  8. #8
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    Thank you so much for the replies! I think we will sit down with the bank and see what they have to say.

  9. #9
    Binkandabee is online now Platinum level (1000+ posts)
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    Quote Originally Posted by cntrymoon2 View Post
    We refinanced under HARP 2 through Chase. Chase has a program where they paid all closing costs and send someone to your home or office to do the closing. It was easy as can be and saved us about $400 a month.
    This is what we did as well. I was so skeptical at first but it really didn't cost us a single penny, saves us money every month and took an entire year off our mortgage. I was so glad that I took the time to read the information they sent via Fedex.
    DD 07/03
    DD 07/08
    Our family is complete!

  10. #10
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    We refinanced under HARP 2 this year and we are very happy to have done it. Our interest rate went way down and we are saving money every month. Our financial advisor recommended it and we don't regret it at all. Someone came to our house to do the closing.
    DD 11/19/09
    DD 06/22/11

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