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Old 12-10-2012, 06:14 PM
 
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My husband and I recently put about $150k into our 4 bed 3.5 bath. Now it is 5 bed 4.5 bath with complete new kitchen. We are in a fixed 30 year at about 6 percent and want to know if we should do the HARP program or get another appraisal and go for a traditional refi.

Thanks for any advice
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Old 12-10-2012, 06:54 PM
 
Location: Central, CT
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Sounds like you need a mortgage broker...they can run the numbers and decide what's the best option. An appraisal is part of a refi, if you have your receipts the appraiser will consider those when evaluating your home. I think unless your finances have gotten worse since you took your current mortgage you'll do better than 6% average rates are about half that right now.
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Old 12-10-2012, 07:02 PM
 
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I would suggest the first thing you do is to get an appraisal of your home to find out how much it is worth.
Your $ 150,000 remodel may or may not equal $ 150,000 of additional value in the market.

Then you can figure out what to do. The HARP program is for people who are underwater or near underwater on their mortgage. It's generally for people whose home value has declined from its original. You may not qualify.

After you get an appraisal, then go talk to a few banks or mortgage companies.
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Old 12-11-2012, 06:20 AM
 
Location: Connecticut
470 posts, read 1,198,467 times
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If you are underwater, HARP 2.0 will only allow your current mortage holder to perform the refinance. If you are pating PMI and the refi is the difference between getting rid of it or not its worth it. You stand to save a couple hundred dollars on interest alone plus the PMI stavings if yoyu have one.

Your first step would be to call the baqnk you currently have the morgage with. If you work with a major bank, dont call the 800 number. See if you van find a local morgage branch and call them. The local people are the ones most likely to help you out with a refi.
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Old 12-11-2012, 06:30 AM
 
3,161 posts, read 7,885,204 times
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Quote:
Originally Posted by willow wind View Post
I would suggest the first thing you do is to get an appraisal of your home to find out how much it is worth.
Your $ 150,000 remodel may or may not equal $ 150,000 of additional value in the market.
This.

Also, as jaydez pointed out, if you are underwater HARP 2.0 will only allow your current lender to do the refinance.

I just refinanced and was unsure if I could go the traditional route or had to do HARP. I got quotes from a few lenders, including my original lender, as if I was going the traditional route and my original lender gave me the best deal anyway. Added to that, if the home didn't appraise well enough for the traditional refi route, they would just roll it into HARP and my interest rate would be 1/4 percentage higher. Luckily my original lender gave us a good rate and nominal fees so it made it easier all around for me, whether we had to do HARP or not.

Bottom line: I did a traditional refinance for 15 yr at 2.75% fixed, as our home appraised high enough where we had enough equity to go the traditional route. A 15 year with HARP would have been 3% fixed. This is all with excellent credit ratings (750+). We just closed this month, so this is recent info.

At 6% if you have good credit, you can do so much better and either shave years off your mortgage like I did or reduce your monthly payment by hundreds. Calling and getting a few quotes certainly doesn't hurt (so long as you aren't positive you need to do HARP). If you know HARP is the only way, then your current lender is the only route.
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Old 12-11-2012, 06:45 AM
 
Location: Connecticut
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This post is off topic for the Connecticut Forum. I will move it to the Mortgage Forum where it will get more responses. JayCT, Moderator
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Old 12-11-2012, 06:50 AM
 
Location: Connecticut
24,586 posts, read 40,140,661 times
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As others have noted, HARP is for people who have mortgages that exceed the value of their homes (a.k.a. Under Water). I would definitely refinance if you have a 6% mortgage. Rates are much lower now and it will save you a lot. Whether you qualify for a mortgage that covers your remodel or not depends on the value of your home now and what the bank is willing to lend you against it. Sit with a mortgage broker to get answers. Jay
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