Can a Refi Plus only be done with my current loan servicer?
I just started my refi application with my current servicer for a HARP 2.0 and have locked my rate. Since they are doing a manual underwrite it will be very streamlined and will not need an appraisal as well. However, the rate that I got was 4.1 (but a rebate of -1.477 and 1 point origination + $425 processing fee + $200 application fee + closing costs). I would like to know if it is possible to do a Refi Plus with another lender to possibly get better rate and terms? Or the HARP guidelines are for any lender (outside of my current one that they must do a DU Refi Plus which might not work for me since my DTI is high? Should I just stick with this since although the rate (and costs) might be a bit higher I won't have much issue with getting approved or can I do better? by joeman_369_356 from Riverside, California. Jul 26th 2012
MIKE CONVIN (mconvin)
#6 ranked lender in Delaware - 202 contributions
hi there: no a DU refi plus can be done with any participating lender or current loan servicer. Can u give me the loan to value you are refinancing? single family or condo ...be glad to further discuss your scenario and give u an overall analysis. Mike (703 505 5300) NMLS 754875
Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions
I always advise people to recieve several quotes. Rates and fees can vary greatly from lender to lender. Good Luck!
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
OK.. So yes and no.. Your current servicer is the only one who will do a manual underwrite.. Other lenders can if they are banker/brokers, but most wont.. If I'm not mistaken, you had said in a previous post that your DTI was 53%.. Under Fannie / Freddie guidelines, there are things that can be added back into your income to help increase your gross and decrease your DTI.. Depreciation, depletion, mileage, home office expense, etc.. Can all be added back in.. Thus lowering your DTI.. I will say that there are better deals out there than what your stating above, but the question for you is.. Will it be worth it.. Most lenders are taking minimum 2 months to close a HARP loan.. if your already submitted, and underwritten.. I'm not sure it's worth the risk of ditching one lender in hopes another lender can do you loan. If your approved, I would stay put.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
As I said in a previous answer, stick with the current deal you have been offered. It's a good offer. The important thing to remember is this... If your true DTI is over 50%, it is doubtful you will be approved through the Automated Underwriting System (AUS). If your current servicer is willing to do a manual underwrite (and almost all of them WILL NOT), then I wouldn't do any more shopping. Yes, you can probably beat the rate and fees on a HARP deal, but it doesn't matter how good the other rate/fees are if you can't get approved. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950
Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions
Shop it with a local mortgage broker because I think you can do better than what you have stated here. If your loan is Freddie ownded and not fannie it is a little tougher though.
It is SFR with a loan amount of 196K and purchased on 1/2009 for 258K. I would say the value is right around there give or take a few thousands. The issue I'm facing is that I'm now self employed compared to when I was a W2 when the loan was taken out. The income that is being used from my Schedule C (line 31 I think) is going to put me in a DTI above 50%. When I checked with another local mortgage broker he told me that he would not be able to do it since it would not pass DU Refi Plus (since they will have to do automatic underwriting compared to my current loan servicer who has the option of doing manual underwrite).So that was my question...can another lender do a manual underwrite or is that only possible with my current loan servicer? For my situation the manual underwrite seems to make more sense even though the rate might be litter higher compared to a regular refi.
Right now I locked and they will be sending me my paperwork next week. In the meantime I'm looking to see if I am to do better or not.The first mortgage broker I talked to did not mention to me that I could add back some of the deductions to increase my DTI. He asked me for the figure on line 31 and based it on that. My line 28 of the Schedule C has a figure of just over 10K as Total Expenses. So if I visit other local mortgage brokers and show them my 2011 tax returns will they be able to give me a better answer if I'm able to qualify for a better rate and terms?By the way my loan Fannie, credit score of 819, high reserves, etc. The only reason I went with my current loan servicer is because of the manual underwriting due to being self employed and my income might not be sufficient to qualify for a regular refi.
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