• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

My loan is through Freddie Mac, why do need I cash to close on my HARP 2 Refinance?

December 13, 2012 by Scott Sheldon

Share on Facebook Share on Twitter Share on LinkedIn Share on Email

What steps can be taken if the mortgage is now Freddie Mac?  Cenlar services the loan but doesn’t do refinancing.  I tried Quicken Loans but they wanted me to come out of my pocket for a lot of money.  I have 800+ credit, working, and just want a lower payment.  The market did depress the overall value of my home, but because I put a down payment on the house when I bought it, I am actually just ‘above water’ so to speak.  Any suggestions??

Good question, the Harp 2 Refinance Program allows folks who are underwater on their mortgages or not even underwater to refinance with the possibility of not even needing an appraisal. One of the unique requirements of Freddie Mac owned loans is that they have a $5000 limit between the new loan amount and the current principal balance on the loan being refinanced.

When you do the refinance loan, the new lender with will order a payoff of your current mortgage. The payoff, majority of the time is typically computed by adding a mortgage payment to the principal balance for estimation purposes, making payoff a few thousand dollars above the current principal balance. When you factor in the amount of money you’re borrowing on the new loan there also has to funds for setting up for a new impound/escrow account (Several months of future property taxes in mortgage interest as well as fire insurance) which is requirement of this type of refinance.

This impound account could be anywhere from $1200 to as much as $3000 plus there’s closing costs that come into the picture as well, assuming that you want to refinance without any cash to close.

What you can expect on Freddie Mac Harp 2 Refinance Loans

Close the loan at the end of the month, by doing so, you can bring in the next month’s mortgage payment which is really amount of impound monies that cannot be financed  your in loan amount due to the  Freddie Mac $5000 limit. This is the best of both worlds here is why:

*The cash to close is not more than your mortgage payment in most cases so there are no disturbances to your cash flow.

*You can meet a $5000 limit and not have to worry about the loan not going through due to this unique component Freddie Mac own loans.

If you would like to get a mortgage refinance rate quote on the Harp Refinance whether your loan is owned by Freddie Mac or by Fannie May, we can help you, and if we can’t more than likely we can point you in the right direction.

Related Mortgage Advice from Scott Sheldon

  • HARP: Making Homes Affordable Aka The Underwater Refinance

    Many Sonoma County Loans have been denied due to loan-to-value restrictions imposed by Fannie Mae…

  • Why do I have to close my credit cards on a cash out refinance?

    The lender wants to make sure future debt obligations do not impact the integrity of…

  • fannie made change to home appraisal covid_19
    Why harp refinances are dwindling

    One of the financial programs aimed at homeowners wishing to refinance in the economic downturn…

  • HARP 2.0 Refinance: Get The "Real" Scoop

    If you live in or own real estate in Sonoma County and need to refinance,…

Filed Under: Refinance Loans Questions and Answers Tagged With: Harp 2 Refinance Program, home loan refinance, sonoma county refinancing

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window