Current HARP 2 interest rates to refinance a mortgage in California today are very low. How low? Low low…..much lower than an the existing interest rate for someone who eligible for the HARP 2 refinance program.
Common question: Are today’s HARP 2 interest rates the same as if someone is buying a home with a 20% down payment?
Answer: Nope. The laws of Physics, Newtonian law, law of Business, law of Entropy, law of Supply and Demand, and twelve other converging types of laws and principles make that physically impossible. Actually, Fannie Mae and Freddie Mac make that difficult with their LLPA’s.
HARP 2 interest rates are usually .125% to .25% with-in the best possible rates of even the lowest risk borrowers. That’s amazing considering you probably have little to no equity and are a candidate for a strategic walk away or short sale.
Get a==> HARP 2 Refi Rate Quote Today
Is buying down the interest rate a good thing to do? Yes, no, sometimes, maybe…..call and we can compare options and discuss the three ways to pay closing costs when doing a HARP refinance. The time to recoup the cost and amount of savings will help determine if it’s a wise decision.
HARP 2 Interest Rate Advertising
The interest rates you hear about on the radio, see on TV, or find online are 90% of the time misleading and outdated. Misleading? Outdated? Are you saying there are mortgage lenders purposely advertising interest rates for the HARP refinance program that aren’t real or legitimate? Yes…..and expired.
Shocking isn’t? I know, we all want to believe a very high LTV or severely upside down mortgage can get the same rate and fee loan as someone buying a home with 20% down payment. The art of advertising is all about creating interest….to tease you into calling.
HARP Interest Rates are Lower Now for Two Reasons
- Market rates are lower across the board on all mortgage programs than they were from 2009 to 2011. There is not enough room to explain all the reasons for this. They just are….think conspiracy…..like if a government were to secretly print money and give it to the too big to fail banks type of deal.
- The HARP 2 refinance program was revamped to eliminate or reduce the amount of Loan Level Price Adjustments (LLPA’s) that Fannie Mae/Freddie Mac imposed on borrowers. This will help you qualify for a lower interest rate.
How to Get a Low HARP 2 Interest Rate When Refinancing
When it comes to mortgage rates, it’s important you understand that you don’t actually qualify for a mortgage rate, but rather you choose the rate you want. I have no vested interest (meaning I don’t make more or less money) on the interest rate or loan program you end up with due to the federal LO compensation reform.
But even more important, your loan officer needs to be completely transparent with their fees, who pays attention to your risk tolerance, follows the bond markets, treasuries, oil prices, current events, employment reports, inflation reports, scandals, and other breaking financial news. You know, stuff that happens all day that causes great stress to stock brokers.
The reason I want you to lock in the lowest rate possible is encourage you to refer your friends or family members to me.
The ability to know when to lock a rate is an art form…..you and your loan officer need to watch the signals that suggest when to float or lock your rate. Like timing the stock market to sell or buy. That’s how you lock in the lowest rate available at the time you are refinancing…..be ready to push the rate lock button.
I’m thinking the $10/hour call center / bank teller person who would handle your HARP refi loan with your too big to fail bank may not have their pulse quite like that…..what do you think?