HARP 2 Mortgage Refinancing Costs

by Maria from Miramar, Florida

Ask Kate how to compare HARP 2.0 mortgage refinancing costs: Hi Kate, I'm trying to refinance my 30 year mortgage. I still owe $212,000. How much should I pay for closing costs for a 15 year fixed rate refinance with an interest rate of 3.785%?

Kate Answers: HARP 2.0 Mortgage Refinancing Costs

Dear Maria,

You might already know there is no published or set mortgage interest rate for the new HARP 2.0 refinance loans.

In the same way, lenders also establish their own closing costs for the Making Home Affordable refinance.

Fewer mortgage refinancing costs with HARP 2.0...

That being said, federal agencies have eliminated two sets of fees for HARP 2.0 that it normally charges lenders (who pass them onto borrowers) during traditional refinancing. But the waiver is conditioned on these two parameters - the property is a principal residence and the loan term is 20 years or less.

By the way, the fees being waived by the mortgage giant are Loan Level Pricing Adjustments (LLPA) and Adverse Market Delivery Charges (AMDC).

Fewer appraisal fees with HARP 2.0...

Also, if you receive a property fieldwork waiver, hopefully you'll not have to pay for an appraisal.

Eligible to be considered are one unit properties including condominiums, attached and detached properties, primary residences, second homes, and investment properties.

However, you can count on cooperative units, manufactured homes, and 2-4 multi unit properties requiring appraisals.

While you compare one mortgage lender to the next...

Other than appraisal fees and Fannie Mae fees in some cases being eliminated, you should shop and price a HARP 2.0 loan just as you would any other mortgage refinance.

A word of caution, I am hearing of vast ranges in the bottom line of good faith estimates, thousands of dollars apart. So pull on your favorite pair of walking shoes because you have some shopping ahead.

Here is how I can help with this:

1. For assistance comparing fees and interest rates, go to Understanding Mortgage Closing Cost and the Good Faith Estimate.


2. You will also find direction for choosing an effective loan originator at Eight Principles to Finding Best Mortgage Lenders.


3. Lastly, as you shop and compare, being able to quickly calculate house payments comes in very handy. Here is my free House Payment Calculator, smooth as butter to use!

What's the 2.0 in HARP refinancing...

You may be wondering why I tag 2.0 onto each mention of HARP.

Making Home Affordable (MHA) in conjunction with Federal Housing Finance Agency (FHFA), Fannie Mae (FNMA), and Freddie Mac (FHLMC), has recently gone through an overhaul to qualify a greater number of homeowners using more relaxed guidelines.

(Yes I agree. How many federal agencies DOES it take to refinance a home with an underwater mortgage? Apparently 4!)

Most notably is the lifting of loan-to-value restrictions for fixed rate mortgages, reducing the sting of negative equity while helping more homeowners get affordable mortgages.

Best Wishes,

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