Harp 2 Freddie Closing Cost Issues

Looking for a HARP 2 Freddie Mac Refinance?

HARP 2 Freddie Mac refinances have been a huge disappointment for consumers thus far.  Although the release of Obama’s popular Home Affordable Refinance Program has been a tremendous relief for many homeowners, those of you with a Freddie Mac loan may not be so relieved just yet.

More information on HARP 2.0

To be eligible for a HARP 2.0 refinance, your current mortgage must have been originated prior to June 2009 and be held by one of the two largest mortgage entities, Fannie Mae or Freddie Mac.  While Fannie Mae allows a new borrower to refinance their existing mortgage and include all closing costs into the new loan, Freddie Mac has not been so generous.

Freddie Mac has imposed a $5,000 maximum amount of closing costs to be rolled into your new refinance.  What does this mean to the average consumer?  They can expect to come to closing with extra cash to put down.  This doesn’t seem right to me…the idea of the program is to relieve homeowners from high monthly payments and thereby lower the possibility of default on their loan. Nevertheless, these are the circumstances we are in so let’s make the best of it.

For a limited time, we will be structuring loans with possible lender credits to give borrowers with Freddie Mac loans a “zero cash to close” scenario that all of the Fannie borrowers are getting.

If you or anyone you know has been deterred from taking advantage of the new HARP 2.0 refinance program because they didn’t want to have to come to closing with money, please forward them this article; spreading the word will cost you nothing, but could save your friends and family their hard-earned money for years to come.

Do I qualify for HARP 2.0?


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About the Author

Jason Gonzalez

Jason is a lifelong student of the mortgage industry that prides himself on his innovative ability to consistently find the best deals for his clients. With well over a decade of industry knowledge and experience, you can trust that he will help guide you in the right direction for your home financing needs. What separates Jason from everyone else is the fact that he cares so much about the people he helps, driving him to go above and beyond to make the dream of homeownership possible for all.