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Compare HARP Refinance Rates
The Best HARP Rates
HARP refinances are deemed riskier than other mortgage loans. But HARP refinance rates are still very low. In fact, in many instances, HARP rates are equal to or better than the average market rates for conventional loans.
This means that it is possible for a homeowner to borrower more than the value of their home with a HARP refinance for the same low rate as someone who has more than 20% equity in their home.
Beware of Banks Charging Higher HARP Rates
Banks and Lenders have always offered varying rates and fees on all loan products. But the degree to which some lenders have increased their HARP refinance rates is puzzling. We have seen plenty of examples where banks offer their existing clients HARP rates that are significantly higher than the average market rate. It is as if they think that these homeowners cannot go elsewhere.
Homeowners should know that their existing lender is typically not their only option when it comes to HARP refinancing. Homeowners should always get another quote to compare to their existing lender’s HARP rates.
HARP Refinance Rates Can Fluctuate
There are legitimate reasons why HARP refinance rates may exceed the market average.
First, Fannie Mae offers expanded level HARP approvals. If a loan is HARP eligible but is deemed too risky for a regular HARP approval it may still qualify for an expanded approval (EA). Each EA level represents a higher risk. HARP refinance rates increase as the EA level increases.
Many banks and lenders do not offer EA level HARP loans. They will simply turn down a homeowner who does not get a straight HARP approval. This is another reason why getting another offer is so vital.
HARP mortgage rates can also fluctuate because of lender overlays. Some lenders have pricing hits for loans over a certain loan-to-value (LTV), debt-to-income ratio (DTI), or under a certain credit score.
These pricing hits can result in higher HARP refinance rates.
Each bank that you apply with should get the same approval level when they run your application through an automated underwriting system (AUS). And while rates may vary slightly due to lender overlays, they should never be too far apart. But all too often, homeowners are being quoted inflated rates by their existing lenders.
Always Shop Your Current Lender
Homeowners should always shop their existing mortgage lender in order to obtain the best HARP rates. This cannot be understated. Many big mortgage servicers, banks and credit unions simply do not offer the best HARP refinance rates. Some may simply charge higher rates due to the higher perceived risk. Others see an opportunity to collect more interest on homeowners who might think they have nowhere else to turn.
Meridian Home Mortgage is proud to offer these homeowners a legitimate alternative. We continually beat other banks and lenders with lower HARP rates and fees. We offer all HARP approval levels and pride ourselves in educating homeowners on all of their HARP options.
Call today to speak with one of our Personal Advisors.