HARP2 and Credit Scores

[IsleSeat]

I am unable to traditionally refinance my residence, which is 85% LTV, my Scores are 729-747-771 and am contemplating applying for the HARP program. My current mortgage is a 30yr fixed at 6.625% and I wish to get a fixed, 15yr. Never been late, long time employed, very little debts/

Questions is (and cannot be answered in any forum related to Harp2) how much weighs in the FICO score and the possibility that under a 15yr loan payment my DTI would be 40%?

I am just sick and tired of being turned down at every corner for reasons of too much indebtness, high LTV or other garbage lenders come up with.

[cdtotten]

With those FICO scores and an 85% ltv, you shouldn't have much of a problem refinancing. What specifically are you being declined for? DTI ratios? You said you have too much debt... what do you have?

[IsleSeat]

I have no debt other than the house. What lenders are referring to is that they will NOT refi at 85%LTV

When they mean too much debt, it is meant that my DTI is no good - even if I have paid on time for years and a new, lower mortgage gets me a LOWER payment.

Bizzarre.

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@cdtotten wrote:

With those FICO scores and an 85% ltv, you shouldn't have much of a problem refinancing. What specifically are you being declined for? DTI ratios? You said you have too much debt... what do you have?

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[crunching_numbers]

I thought HARP2 was only for 30 yr mortgages.  Also, make sure you are speaking with a lender that participates in HARP. Not all lenders do. The rules for HARP are that you have to be greater than 80%, and 85% is greater. Are you sure that is the problem?

[mkm77]

I know that Lenders like BedrockLending.com, Wells, Bank of America etc. allow up to 125% LTV under harp. Main problem is after 95% LTV it is allowed but your rates really start to rise.