HARP refinance in Illinois

John See

LoanSafe Member
Aug 16, 2013
3
0
0
Hello All,

I've been reading through the posts here and it has been very educational. Chicago, IL condo. Here is my situation:

Purchased home in Jan of 2005 original value 190K
1st Mortgage: $135K (Nationstar) Interest only 10yr (up in Jan 2015)
2nd HELOC: $45K (PNC) Interest only
Current Value: $160K (Fannie automated value)

Nationstar called to offer me HARP 1 financing (suposedly did not qualify for HARP 2) so they ran the value over the phone, this was last Friday. Nationstar's refinance offer into a 30yr fixed is something around 5.173% (still havent got the docs in the mail yet so this is what I remember). Seems sort of a high rate, but since I've read up on this forum, I will shop around. If anyone can tell me if this is too high for right now, it would be appreciated.

The 30 yr fixed payment is much higher than my I.O. ARM, but I was expecting that. My income is OK, so can absorb the increase, credit is good above 720, I've never missed a payment on either mortgage. Obviously I would like it as low as possible. I was wondering if I should wait on HARP refi until closer to the end of 2014, or if the onrush of HARP 3.0 applicants would make that a bad idea. The Nationstar mortgage rep was very adamant about this, but that may just be a hard sell. Should I do this ASAP or enjoy the lower payments and save the money for most of 2014?

Secondary Question: Once the Refi is done, my HELOC will only hold maybe 15K worth of value of my Condo. It seems illinois law favors the lendor, but I'm tempted to stop payment on my HELOC and maybe attempt to settle for less. I may repost this on a different section of the forum, once my 1st mortgage is refinanced to a more stable product, and my need for a good credit score is less necessary. Any opinions on this strategy let me know. I think PNC could try to foreclose for their $15K but seems like a bad option for them to me.

Also any lendors in IL that anybody could recommend for HARP refi would be appreciated.

Thanks All
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
John See

Welcome to Loansafe. Reference your HARP refi question. Due to NS's less than glowing reputation, I recommend you NOT refi with them. I recommend you speak with at least two other experienced loan brokers, whose firms offer HARP programs. You can then make a more informed decision about when to refi (and with whom). About your HELOC. Since it's underwater, they won't FC. You could certainly stop paying that lender and seek to eventually settle. Be advised that no longer paying them will adversely impact your credit, and that will affect your ability to refi your 1st. Hence I recommend you do the HARP refi first, then settle with your HELOC lender. That's the strategy I'd follow. Good luck.
 

John See

LoanSafe Member
Aug 16, 2013
3
0
0
Welcome to Loansafe. Reference your HARP refi question. Due to NS's less than glowing reputation, I recommend you NOT refi with them. I recommend you speak with at least two other experienced loan brokers, whose firms offer HARP programs. You can then make a more informed decision about when to refi (and with whom). About your HELOC. Since it's underwater, they won't FC. You could certainly stop paying that lender and seek to eventually settle. Be advised that no longer paying them will adversely impact your credit, and that will affect your ability to refi your 1st. Hence I recommend you do the HARP refi first, then settle with your HELOC lender. That's the strategy I'd follow. Good luck.
Thanks for the heads up on NS. I thought the quote was a little high, even after short search on rates online. I will continue to pay the HELOC definately until the 1st is settled.
 

John See

LoanSafe Member
Aug 16, 2013
3
0
0
Just wanted to correct that my loan is owned by Freddie Mac. I just checked the online to verify. I will be looking to find some loan brokers to help me find alternatives to Nationstar's offer. I guess I should call Loansafe.org's line?