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Advice on Refiancing with Chase under HARP

Discussion in 'HARP Mortgage Loan Program' started by kenju4u, Jun 4, 2011.

  1. kenju4u

    kenju4u LoanSafe Member


    I am currently in the process of refinancing my condo, my current mortgage is with Chase. My mortgage is for 294,292.00 with a 6.5% fixed 30 year rate, I also have PMI because i put down 10% when I bought my condo 3 years ago.

    Few months back I called chase to see if there were any options for me to refianance and I was told by even though my LTV is around 105 - 125% I qualify under the streamline HARP program. I was intinally offered a 5.375% rate which has now been updated to 5.25%. With PMI and no appraisal required. I was also told my approximate closing cost would be 1200 which includes a non refundable fee of 395.

    I am trying to understand my closing costs and was wondering how should I confirm I am getting what I was promised and not being charged more, because my new Mortgage amount is higher then what I owe right now, but I am being told it higher because it includes accrued interest and closing costs by the processing officer. Upon asking my mortgage officer, he continues to say my cost is $1200 as promised and that the reason the mortgage amount is higher is because of the accrued interest.

    Can someone advice on whats the best way for me to make sure everything is kosher with this deal.

    - Ken
  2. strugglinginaz

    strugglinginaz LoanSafe Member

    Hi there,

    I actually process Harp refis for another major lender. The closing costs for your refi actually sound very low. The typical refi that I see everyday has title fees, which can range anywhere from $700-1500, mortgage tax fees if your state charges those, processing/misc fees $600-$700 and calculated interest. There will also be settlement charges for the escrow account if your new mortgage is required to utilize an escrow account. So, unless you are getting a lender credit towards some of your closing costs, $1200 sounds very low to me.
    Additionally, with the new financial reform that went into effect April 1st, there are very strict guidelines/rules on the variance allowed between what was disclosed to you up front on the Good Faith Estimate and what you are actually charged at closing. Anything above a small margin tolerance must be "credited" to you, whereby the lender is basically eating those fees/charges above what is allowed. Do you have the original GFE? I would make sure that the final Settlement Statement is sent to you for review prior to going to the closing table so that you can review what is on that vs. what was on your GFE. The good news is, the banks are being highly regulated and watched these days, so Chase SHOULD be following the guidelines very closely.

    If what the processor tells you is true, $1200 for closing costs is more than a good deal, IMO.

    Hope this helps!
  3. kenju4u

    kenju4u LoanSafe Member

    Thanks for your reply! I was told I am receiving a lender credit of -.5 point towards my closing cost. approx $1500. From what I understand and was told my escrow amount needed vs what I have right now should wash each other out. My closing is tomorrow and I have not recived my HUD1 yet and I might not receive it today.

    The processing officer did tell me that even after I sign the documents tomorrow I have 3 days to look things over and back out.

    I have been looking for a catch to this deal because it seems too good to be true, but I have'nt found anything yet. I feel I am not as educated in the matter of mortgages in general to find the catch so it makes me nervous.

    Going into this refinance, my expectation is to keep the amount of mortgage I owe right now to the same amount after the refinancing and pay for any additional amount (fees or cost) up front instead of it being added on to my mortgage which would basically be something I'll pay interest on for 30 years.

    - Ken
  4. kenju4u

    kenju4u LoanSafe Member

    Quick question: Does interest rate vary (increase) depending on how much equity you have on your home when refinacing? I was told the interest they can give me 5.25% because even though the current rates out there are around 4.5% thats only for people with 20% equity or more. Since I am getting refinanced under the streamline HARP program because my LTV is >105% the best rates I can get in 5.25%.
  5. kenju4u

    kenju4u LoanSafe Member

    Just wanted to updated the fourm on the refinance status:

    I completed the refianance this past Friday. Basically I refianced my 6.5% rate to a 5.25% with Chase under the HARP program. My closing cost was around $1200 not including accrued interest and escrow. The accrued interest amount was from the date i will switch to the new loan to the begining of the next month. Escrow from my old loan was transfered to the new loan plus any additional amount required.

    The rate i was offered was a little higher because I recieved lender discount towards my closing cost. From what I understand I had the option to pay the closing cost in full and instead get a slightly lower interest rate but it was minimal difference. I would still have not recived a 4.5% which is the going rate right now because my LTV is >105%. I also do not plan on staying in this home for more then 5 years, so this option worked for me.

    I do not plan on paying the money I am saving towards the mortgage so I can pay it off sooner, reason being I dont plan on saying here more then 5 years. I am going to instead save it so if the home does not have a LTV <80% 5 years form now, I do not loose more money.

    Hope this helps someone looking into refiancing.

    - Ken
  6. Cat Damiano

    Cat Damiano Mortgage Wars


    Thank you for the update and Congratulations on finishing the refi. It sounds like a good plan that you have mapped out.

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