Do these ReFi numbers sound ok?

[BriamNAV]

Hi, wanted to get some feedback on these numbers being offered by my lender in Northern Virginia for a ReFi. Been watching the rate fluctuate daily and saw it go from 4.675 to 4.025. I know that your typically not going to get the lenders low advertised rates under HARP because they need to cover the risk, so I wasn't holding my breath for something under 4.0%.

Loan Amount: $261K
Market Value: $292K
LTV/CLTV:89.57%/119.01%
Credit Score 735
5 Year ARM (interest 0nly) to a 30 year fixed (set to expiret next May)
Current rate is 5.5%
Lender is offering under HARP2:
Interest Rate/APR: 4.375 %/4.418%
0 Points
Have second Lien in form of variable rate LOC which lender will subordinate (same lender for both)
According to my lender, you cannot combine first and second liens into one loan under HARP
Second Lien is about 85K .. currently paying about $235 a month @3.25% APR
Closing costs about $3700
Looking at about $1583 a month payment (not including second Lien)

How does this deal sound?

BriamNAV

Thanks

[Cat Damiano]

Hi BriamNAV,



Welcome to the forum and thank you for joining..........

Try contacting Erik Sandstrom, he has been helping members with their HARP questions and is very knowledgeable on the subject. He can be reached here;

Erik Sandstrom
Direct: (619) 379-8999
Office: (858) 217-5756
Fax: (866) 545-1214
erik.sandstrom@wjbradley.com

[Erik Sandstrom]

Hi Brian,
And Thank you Cat, we might have already spoken.

It looks like you're turning a very toxic situation into a much better scenario. With HARP you can now feel comfortable that your payment won't change and you're actually paying off some of the balance! To me what you're being offered isn't a bad deal, it may be above market rates (BARELY) but there's many variants that can play a factor into what rate you get. If you feel that it's high, speak with another lender and go over a rate quote. I would also factor in who you're working with, is it a chop shop lender or will you be working with a qualified, trained professional. There's many people in this industry and you want to work with someone you trust.

Thank you for providing us with basically everything we need to see if it's a good offer, there's a few things missing: Is the property a condo? Is it Freddie Mac or Fannie Mae? Do you currently live in the home or is it an investment? These all affect what you're able to get with your rate including what state you live in.

[BriamNAV]

Thanks Erik

The lender is BOA, it's a Freddie Mac, I currently live in the house (not a condo). Virginia.