HARP 2.0 Quotes and Fees

Trish has applied for the HARP 2.0 with her existing mortgage company. They gave her a 4.825% quote. Her credit score is 806 and she is wondering if the 4.825% is a good deal with $26,000 closing up front. She asks Robert Palmer if this is a good deal or if she should shop around.

You should absolutely shop around. A lot of the banks are over quoting and overcharging on the HARP; they have limited capacity and they get the first shot on their existing customerĂ¢??s loans so they come out with high rates and fees. You will save thousands of dollars based on that quote if you shop around with two or three other companies. Right now for HARP you should be around a 4.25% APR at the most a 4.375% APR. There are factors that come into a play, such as the loan amount. At a lower balance 4.375% or 4.5% APR should be the max without upfront fees. Also on a smaller loan, junk fees should be around $1,500.