Fannie Mae just released a new study showing that many HARP -2 eligible borrowers have still not refinanced. The study wanted to know what has caused these borrowers to not take advantage of the HARP-2 program. The study found that perceived Costs, rigid loan terms, distrust of the lender or offer, and misperceptions about qualifying are the main reasons why people are not refinancing.
Along with those reasons, borrowers also said they don’t want to take out another 30 year loan; they feel they’ve been bombarded with mailers and offers; they still think their home has lost too much value; there is too much paperwork; and they do not like or trust their current servicer.
We’d like to address several of these issues. First, borrowers can still use the HARP to refinance into shorter terms and they do not have to take out just a 30 year loan-- they can do a 10, 15, 20 or 25 year term, which also would decrease the amount of interest paid during that loan.
At Indigo Mortgage, we realize that borrowers are sometimes inundated with offers and mailers so we try to be more of a resource. We can often answer many of their questions without even doing an application. Remember that a borrower does not have to return to their current lender to take advantage of the HARP refinance. As a matter of fact, these homeowners would be well served to shop their mortgage around before and review various offers in order to choose their new lender.
Indigo Mortgage has completed many HARP-2 refinances and we strive to make it as easy and seamless as possible to complete your refinance. If you have questions on a HARP refinance or for any other mortgage or refinance information, contact Indigo Mortgage at 505-836-5700.