Looking for Opinions refi with HARP offer

debrJanuary 2, 2011

Hi all. Just received an offer from Chase to refi my 110k mtg (currently at 5%/15years/7years left to pay)to a new 15 yr mtg @ 4.625% (no costs to me at all). This would be thru the Homeowners Assist Relief Program and the bank calls it a proactive approach for people who pay their mortgage on time.Looking for some opinions as I'm not sure whether to go with this or leave things alone. My payments would decrease by $700/mo. If I take the deal but continue to make my current payment I could pay off the house in 6.5 years and save 18K. OR, I could take the xtra cash and bank it and pay off the house when there is enough cash (would extend the time I could get tax deduction). Or I could leave it alone. Any thoughts are appreciated. Thanks!

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Billl

"Just received an offer from Chase to refi my 110k mtg (currently at 5%/15years/7years left to pay)to a new 15 yr mtg @ 4.625% (no costs to me at all)."

There certainly is a cost. They just rolled it into the interest you will pay. 4.625% is a high rate for anyone with good credit right now.

Overall, it sounds like you have a good idea of how the numbers work, so I think you should just expand your search a little before picking the option that is best for you. Call around and see if you can get a better deal elsewhere. Also ask about a traditional 15yr with closing costs and 5/1 ARMS (you will have most of the house paid for in 5 years anyway, so there isn't a real risk there of rates increasing.) You may find that for a few thousand up front, you can recoup another 20k in interest payments.

As for saving vs paying down mortgage - that really depends on the rest of your financial picture. If you don't have a big emergency fund, have other debts, or aren't saving enough for retirement, then you might need to do those instead of paying down the house. If you have everything else in your financial life on track, paying off the house could be the final piece.

    Bookmark   January 5, 2011 at 2:09PM
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debr

Thanks Bill.....some good thoughts to ponder

    Bookmark   January 9, 2011 at 2:32AM
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GammyT

Are you sure it really came from Chase? I bet it was an email offer and you just clicked.

The government program is called Making Home Afforable, see http://makinghomeaffordable.gov

    Bookmark   January 14, 2011 at 7:51PM
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writersblock

>The government program is called Making Home Afforable, see http://makinghomeaffordable.gov

That's the URL for the main site for all their programs all right, but there is a program called Home Affordable Refinance Program (click the tab marked Programs on the home page).

    Bookmark   September 6, 2012 at 9:50PM
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writersblock

Oops, sorry, meant to say Explore Programs>If your home's value has fallen.

Here is a link that might be useful: Direct link to the HARP page

    Bookmark   September 6, 2012 at 9:58PM
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