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Question about refinancing.

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biggestmexi
New Member

Question about refinancing.

I looked around quite a bit but could not find answers to a few questions I had. 1. Will refinancing my house reflect poorly on my credit? 2. Is there any benefit to HARP if I can get a loan with out it? Thanks much.
Message 1 of 12
11 REPLIES 11
BrianB_The_Loan_Professor
Valued Contributor

Re: Question about refinancing.

You may take a small hit temporarily but in the long run a refi shouldnt hurt your score

If you can get a refi without HARP there probably isnt a reson to go that route - it is more for folks that are upside down and need to refi

 

Good Luck 

 

Brian

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 2 of 12
biggestmexi
New Member

Re: Question about refinancing.

Cannot refi due to my lender adding some "credit enhancment" to my loan when i got it in '07 Smiley Sad Need to use FHA or if i can get an appraisal high enough.
Message 3 of 12
DallasLoanGuy
Super Contributor

Re: Question about refinancing.


@biggestmexi wrote:
Cannot refi due to my lender adding some "credit enhancment" to my loan <= what does that mean? when i got it in '07 Smiley Sad Need to use FHA or if i can get an appraisal high enough.

 

Retired Lender
Message 4 of 12
biggestmexi
New Member

Re: Question about refinancing.

I was actually reffering to my mortgage.

Message 5 of 12
BrianB_The_Loan_Professor
Valued Contributor

Re: Question about refinancing.

what is the credit enhancement you mentioned?

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 6 of 12
biggestmexi
New Member

Re: Question about refinancing.

Unsure.

 

I found out because of the Rep at Quicken Loans, but he couldn't tell me anything about it.

I asked if contacting my current lendor will help me and he said probably not, as the reps there don't know much.

 

And i do not remember anything adding to mine when i got it.

 

Whatever it is it make me ineligble for HARP

Message 7 of 12
ShanetheMortgageMan
Super Contributor

Re: Question about refinancing.

This will sometimes happen when you have pool insurance after closing, which means that the insurance cannot be transferred.  When it does, the only thing you can do is a same-servicer refinance so that the loan can remain the in the enchanced pool.  Here is the official language and explaination below.

 

Are existing loans with lender-paid pool insurance coverage, investor-paid (i.e., Fannie Mae–paid) pool insurance, or other secondary market coverage eligible for Refi Plus refinances?

Most existing Fannie Mae loans with lender-paid pool coverage (sometimes referred to as GSE pool insurance), investor-paid pool coverage, or secondary market agreements (to the extent the secondary market coverage reverts to the original primary MI) are eligible for the Refi Plus DU and manual underwriting options.

 

Existing loans that had these types of credit enhancements added after loan closing, and the coverage was necessary to meet Fannie Mae minimum credit enhancement requirements applicable to loans with LTVs in excess of 80%, remain ineligible.  Lenders may contact their account teams to discuss other options for refinances of existing loans that have these forms of alternative credit enhancement arrangements, including options for loans that are excluded from the eligible DU Refi Plus database.

 

Are loans currently subject to lender recourse and/or indemnification agreements eligible for Refi Plus?

Many existing Fannie Mae loans that are subject to recourse and/or indemnification agreements are eligible for Refi Plus (DU or manual underwriting). Effective with loan applications dated on or after February 1, 2010, for Refi Plus (manual underwriting), existing mortgage loans that are subject to full, unconditional recourse agreements, including loans with less than life-of-loan agreements, where such agreements were not needed to meet Fannie Mae’s minimum credit enhancement requirements applicable to loans with LTV ratios greater than 80%, are eligible only if the new mortgage loan is delivered with full, unconditional life-of-loan recourse, designated with Special Feature Code 001. Existing mortgage loans that are subject to conditional or other non–full recourse agreements remain eligible for Refi Plus and (not applicable to DU Refi Plus; refer to the Selling Guide for details).

 

Existing loans that are subject to recourse and/or indemnifications agreements, and the coverage was necessary to meet Fannie Mae minimum credit enhancement requirements applicable to loans with LTVs in excess of 80%, remain ineligible for Refi Plus (DU or manual). Lenders may contact their Fannie Mae account teams to discuss details regarding recourse/indemnification loans that remain ineligible and potential options.

 

Not sure who your current lender is, but a lot of BofA mortgages seem to have this issue.  You can try calling your current servicer to ask about it.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 8 of 12
biggestmexi
New Member

Re: Question about refinancing.

Thank you for the information.

 

Originally my current lender (PHH) is who I called first.

 

I contacted them thinking it would be much easier to do it through them since their rates are rather low, and just to get a feel about it. I figured this would all be much easier but now it has turned into a big mess.

 

They were the ones that originally told me I cannot refi unless I want to put 10k down.

 

So, now I am wondering if I should just wait to Refi later this year. Do some home upgrades to try to get the value up, then wait until summer so it can look better then try it again. What do you think?

Message 9 of 12
ShanetheMortgageMan
Super Contributor

Re: Question about refinancing.

How much do you owe on your mortgage?  Was an appraisal done or were they just estimating the value?

 

I take it you went to https://knowyouroptions.com/loanlookup - did it say you were eligible?

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 10 of 12
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