Let me start with some background about my situation.
I have never missed a payment or been late on a payment.
My home is owned by Fannie Mae.
I originally put a 20% down payment on my Home.
I have had the same Job since 2008.
I have a 770 median credit score.
Wells Fargo services my current mortgage.
My application for Harp 2.0 was rejected by Wells Fargo because I am too "High Risk" due to how underwater my home is. LTV is too high!
The whole purpose of Harp 2.0 was to finance people who did the right thing but were underwater for no fault of their own. Wells Fargo is criminal. They are ignoring the government guidelines and refusing to refinance Harp 2.0 loans with a LTV more then 115%. That is not even as good as Harp 1.0. (which they would only refinance up to 105%).
Even if I would have have been refinanced I would have had to pay a 5% interest rate when rates were hovering in the low 4% range due to how underwater my home was (about 170%)
This whole thing is criminal, and ridiculous. They do not want to refinance me because they are making money off me already and do not want to lower their profits.
Why even claim to participate in the program if you really are not following any of the guidelines?
Sunday, March 25, 2012
Posted by Chris at 11:50 AM
Wednesday, March 21, 2012
I met with the mortgage broker....I do have to pay 370 dollars for an appraisal fee :(.
Because I told him I think my house is more then 125% underwater my interest rate will be a whooping 5.0%. He says if my appraisal comes in better, and I am 125% or under then I will have a lower interest rate.
The only reason I am going through with the refinance is 5% is better then the 6.5% I am currently paying, So I still feel like its worth it even though it will take me like 2-3 years to break even on the refinance.
I am starting a clinical internship rotation soon, and I will need the lower mortgage payment so I can work less hours and focus on the very last part of my education.
Harp 2.0 was pretty disappointing because the Banks are not obeying the intent of the program, and are instituting overlays like appraisals when they are not required by Fannie or Freddie. I am a Ron Paul supporter and a Constitutional conservative but you can really understand the occupy wall street movement and their anger to the banks when they screw over people like this just to make a larger profit.
I did the right thing. I put 20% down on my condo, I kept paying my mortgage even though I am 170% underwater (even after the 20% down I am still 170% LTV). And I did not buy more house then I could afford.
Yet they still do everything they can to screw me with appraisal fee's and making me pay a higher risk interest rate because my home is underwater even though that is not the intent of the program, and goes against the federal guidelines. If I cared how underwater I was I would have walked away already...why punish me further when I have proven I am responsible.
Very disappointing but I guess a 1.5% savings is better then nothing.
Posted by Chris at 5:13 AM
Saturday, March 17, 2012
Tuesday, March 20th I will be meeting with the mortgage broker to fill out my mortgage application and lock my rate. Of course knowing my amazing luck, mortgage rates have been rising the past week. (/Sarcasm)
I will post an update Tuesday night and let you know what happens, and see if I still get screwed having to pay an appraisal.
Posted by Chris at 10:07 PM