HARP 2 Refinance Just Got Cheaper For Underwater Homeowners!

HARP 2 Refinance Loans Cheaper as of This Week!

Despite the slight increase in interest rates, due to a recent policy change, HARP 2 refinance loans have gotten cheaper for upside down homeowners.  The HARP 2 refinance, also known as the Home Affordable Refinance Program, was designed to help underwater homeowners refinance into today’s low rates, regardless of the equity in their home!

What does this mean for you?

Well, it means that even if you owe a million times what the house is worth, you may still be able to refinance. But that’s old news by this point.  The new, exciting update here today is that Fannie Mae, one of the largest mortgage entities on the planet, has lowered the pricing adjustments (fees or penalties associated with getting a new loan) and made it an even better time to refinance!

How much could I save?

I don’t want to bore you with the details, but suffice it to say that most applicants will receive a ‘discount’ (savings from the new, lower adjustment amounts) of around one point.  A point is equal to 1% of the loan amount, so one point on a $300,000 loan would be $3,000.  That savings can then be reapplied to lower your interest rate even further and lock in a fixed lower mortgage payment for life.

For you mortgage nerds out there, here’s what the new adjustments look like (see below).  For most, this information is completely superfluous, but just by glancing you can see that it is very credit score intensive; meaning that the better your credit score, the less costly your new loan.  But, what you can’t see from this data alone, is that the differences between the adjustments are actually greater in the lower FICO score brackets; they are seeing a savings of nearly 1.5 points!

Ok, so now what?

Don’t take my word for it; check it out with a local mortgage broker and find out for free what you’d qualify for.  Hey, since you’re already here, might as well request a LIVE Rate Quote from yours truly. I’ll break down your entire scenario and give you and honest answer as to whether or not refinancing is the right choice for you and your family.


Fannie Mae HARP 2 / LTV FICO Adjustments for Loans Over 15 YRS



60.01 – 70

70.01 – 80

80.01 – 90

90.01 – 95

95.01 – 97

97.01 – 105

> 105%

<620 -0.50 -1.50 -3.00 -3.00 -3.00 -3.00 -3.00 -3.00
620-639 -0.50 -1.50 -2.75 -2.75 -2.75 -2.50 -2.50 -2.50
640-659 -0.50 -1.25 -2.25 -2.25 -2.25 -1.75 -1.75 -1.75
660-679 0.00 -1.00 -1.75 -1.75 -1.75 -1.25 -1.25 -1.25
680-699 0.00 -0.50 -0.75 -0.75 -0.75 -0.50 -0.50 -0.50
700-719 0.25 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50
720-739 0.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00
>=740 0.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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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.

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