Wednesday, March 6, 2013

Refinance is a go!

I can hardly believe it, but we've been approved for the mortgage refinance - the one that we did not initiate. It seriously was about the easiest thing we've ever done. It entailed a five-minute phone conversation and our commitment to take the closing papers to the bank and have them notarized. That's it. Keep in mind, when we actually did initiate an attempt to refinance a couple of years ago, we were turned down flat because of the amount of our debt.

So, in case this can help anyone, this is being done under HARP - Home Affordable Refinance Program. As I understand it, the program was initially for homeowners who were underwater or very close to it. Recently, though, it has been expanded and equity is no longer the marker of eligibility. There are two main requirements. 1. Your mortgage must be held by either Fannie Mae or Freddie Mac. (Who knew ours has been Freddie Mac since 2003? It's easy to check online.) 2. You can only use the HARP once.

While they do run a credit check, they don't have any debt ratio requirements. I believe the credit check is to confirm that there are no accounts in collection and that there hasn't been a foreclosure. Our refinance is a 3-step HARP through Wells Fargo, our current mortgage holder. There are NO closing costs. I checked that one out thoroughly! The amount listed on our closing documents is what we owe on the mortgage.

As long as we get the papers signed, notarized and returned by March 25, our interest rate drops more than 2 percent.

All I can say is, WOO HOO!!!



  1. I will pray this blessing is yours, you certainly deserve it. just think of where you can throw that left over money!

  2. That is great! Many congrats!

  3. Refinancing mortgage has become a common activity in the real estate market. Most of the homeowners want to go for this option as the mortgage interest rates are going at an all time low. A homeowner can contact his present lender or other local lenders in order to get a mortgage refinance. If the homeowner meets all the required criteria of the lender, then he will be able to refinance the mortgage easily. The lender would like to go for a credit check. He will check the employment history of the homeowner as well. The homeowner should also meet the DTI ratio requirements as well in order get good rates while refinancing a home loan.