Am I getting a fair Harp 2.0 deal?

[littlefry]

Am I getting a fair deal or should I shop around?

Current Mortage:

CitiMortgage (Fannie Mae Mortgage)

Located in Florida (purchased in Aug 2005)
Current Rate: 5.875 (30 year fixed)
1st Mortgage: 205,000
HELOC: $17,000 with Citi as well.

PMI: $161/Month

Credit around 720

Zillow values my home at $81,000. Do you know how home values are calculated?
__________________________________________________ _____________________________________
Anyway, Citimortage proposed:

4.375% on 1st Mortgage with about $5,000 in capitalized closing costs with 0 points. New loan $209,000 -- 30 year fixed.

If I pay 1,800 and recapitalize it, I can get a 4.125, but my new loan would be closer to 212,000.

Since this is my first time exploring Harp 2.0, I was wondering if you had any other suggestions. I have never been late on my mortgage and I currently only have house debt and a school loan. They said no appraisal or income verification, but closing could take 90 days.

Any suggestions? Is the offer (rate and closing costs) reasonable since I am significantly underwater? Any insight advice will be greatly appreciated.

[Erik Sandstrom]

Am I getting a fair deal or should I shop around?

Current Mortage:

CitiMortgage (Fannie Mae Mortgage)

Located in Florida (purchased in Aug 2005)
Current Rate: 5.875 (30 year fixed)
1st Mortgage: 205,000
HELOC: $17,000 with Citi as well.

PMI: $161/Month

Credit around 720

Zillow values my home at $81,000. Do you know how home values are calculated?
__________________________________________________ _____________________________________
Anyway, Citimortage proposed:

4.375% on 1st Mortgage with about $5,000 in capitalized closing costs with 0 points. New loan $209,000 -- 30 year fixed.

If I pay 1,800 and recapitalize it, I can get a 4.125, but my new loan would be closer to 212,000.

Since this is my first time exploring Harp 2.0, I was wondering if you had any other suggestions. I have never been late on my mortgage and I currently only have house debt and a school loan. They said no appraisal or income verification, but closing could take 90 days.

Any suggestions? Is the offer (rate and closing costs) reasonable since I am significantly underwater? Any insight advice will be greatly appreciated.

Hi Littlefry,
Welcome to the forum and thank you for sharing your experience with HARP. I'd like to give you my opinion as a licensed loan officer offering the HARP program.

It's really going to depend on when you locked in your interest rate, as well as the type of property you own. If it's a condo you will get hit on the interest rate as well if it's non-owner occupied. Today's rates are much better than what you're being quoted for a Single Family Residence, owner occupied.

If you would like to go over your scenario, I would love to provide you with a rate quote. Feel free to get in touch with me when you have a free moment on my contact information below.