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Sean, Home Owner in 06606

Harp 2.0 a good move?

Asked by Sean, 06606 Sat Mar 31, 2012

I just got quoted 30 year fixed at 5% under Harp 2.0 for my rental property. I am currently at 6.375 fixed with 24 years remaining. The home is 100K underwater and I am planning on keeping it rented for at least the next ten years if not longer in hopes of recouping my losses and eventually cash flowing on the rent. The new payments would be a couple hundred dollars lower, and get me closer to the rent I take in, I have to put in about 600 a month right now. Is this a good plan, and is 5% a good rate?

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Being $100,000 underwater, your options are VERY few. So, 5% is not the typical rate one would expect for a traditional loan, but for this program it is "acceptable". Can it be beat, maybe. Most leanders will give you a quote without cost or obligation, so you should look around.
0 votes Thank Flag Link Mon Apr 2, 2012
It is a lot better than what you have. If you are going to hole the property that long it is probably a good move. Divide your cost to do the loan by your monthly savings in payment to determine your break even point. Look at doing a 25 year loan see how that compares, good luck,
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Sat Mar 31, 2012
What are your options? How many loan officers have you contacted and presented to? I havea very qualified direct underwriter with whom I work......Dave......203.654.2905
0 votes Thank Flag Link Sat Mar 31, 2012
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