The 150% refinance is designed for borrowers that cannot qualify for a regular mortgage refinance because their mortgage is greater than the home’s value.
While this is a fantastic option for many individuals that find themselves “underwater” in their mortgage, there are hurdles:
- The borrower’s current mortgage must be backed by Fannie Mae or Freddie Mac.
- You must use a participating lender (CNN Mortgage is a participating lender).
- While the borrower can roll in closing costs (up to 4% of loan amount or $5,000 – whichever is less), they can’t combine a first and second mortgage into one loan.
Contact CNN Mortgage to get more information about the many benefits of HARP and how it may help your clients better their position with their primary residence.