I hate to say it, but you’re currently stuck. B of A and Chase do not do self-serviced PMI loans yet. I’m hoping they’ll do them soon and 3rd party options become available because this is one of the last major problems we face with HARP. Sorry, but don’t give up. I promise I’ll be sharing the news if/when refinancing PMI loans will become available through these channels.

I haven’t heard whether Suntrust will do loans with PMI. Your higher rate loan is really a “Lender Paid Mortgage Insurance” loan or LPMI. Even though you don’t pay PMI directly, the lender is and you see it in your higher rate. This small provision still prohibits you from doing a HARP loan with a lender who is not re-issuing the PMI.

The 97% quote you got from your lender was probably referring to FHA, which allows 97.15-97.75% of your home value.

Debt to income ratio may have been a problem but the PMI is definitely a hurdle that income cannot fix. The only confirmed lenders I know of that will do a HARP loan when there’s PMI is Wells Fargo and Flagstar, which which they only do these if they’re currently only serviced by Wells and Flagstar respectively. They won’t do other PMI loans.

Everything you’ve been shared is true. LTV and CLTV affect pricing. Loans over 80% do required impounds but I think there’s something in CA that doesn’t require this in CA, but I’m not sure.

All of the price adjustments you’ve been quoted sound correct. Sorry, it’s not just LTV that affects pricing.

Our payoff balance on our loan is $275K and our real estate agent thinks our house would appraise around $250K. We are 4.5 years into a 30yr 6.25% fixed loan. We would like to refi but have PMI attached to our loan that is held by BofA (formally Countywide). We are hoping to refi, rent our house out and buy a new house with $50K we have in the bank. We have credit scores in the low 800′s and no other loans and zero credit card debt.

Do we have any options or are we just stuck?

Thanks,
Wren in California

Chase originally mailed us a letter to say we qualify for HARP. We tried and were denied with a cryptic letter saying our income disqualifies us; at the time I had a 15% cut and my wife was out of work. We tried again, my wife had part time work and the new excuse was the ratio disqualified us.

This is our first home, purchased at 184k and we know owe 164, but the local estimates for our home are roughly 152k. I’m not sure why we are not qualifying, since this is our only debt and we are at minimum 8% over the estimated value. I assume it is the PMI and the Lender’s willingness to do a refinance or modification.

By the way, our loan statements are coming through LBPS instead of Chase. ANyone have experience with LBPS?

I have a question. I am trying to get a HARP loan. I currently have a Freddie Mac loan. I have a 93% LTV but my lender says that since my CLTV is over 95% (I have an equity loan) that I have to pay a premium of .375% added to my rate. Is this correct? I thought for HARP they only looked at the LTV.

Also in my current mortgage I do not escrow my taxes and insurance however he says that if my LTV is below 80% I now have to escrow with my new HARP loan. Is this true? I thought under HARP everything about your loan stays the same but the rate.

Thanks,

Craig

This program is getting a lot of attention, but I don’t have any reports of a successful refinance yet.

I read about the upcoming sept 7 short refinance, what do you recomend and what are the steps to follow. Where do i start?

My biggest concern is how to get the current lender to write down at least 10%? Is my current lender freddie mac?

Appreciated,