Posted by ME/NJ on 8/9/13 11:50am
Msg #479791

A first for me with a HARP deal

For the last year I've done tons of HARP signings and yesterday I did my first HARP ARM 10 year adjustment. Wondering if this will be something new. Starting rate was 3.5 could go down as low as 2.5 or as high as 8.5 when adjustment kicks in.

Reply by cremevette on 8/9/13 11:52am
Msg #479794

Here we go again? n/m

Reply by The Happy Homemaker - Debra on 8/9/13 12:19pm
Msg #479806

Re: Here we go again?

See a lot of these out here in California. These types of loans work very well for flippers, and people that want to live in the home very short term. Friend of mine got one and I told him he was crazy, then he explained he would only be there long enough for his daughter to graduate from college and the he would leave California all together. Makes sense for him in that situation.

Reply by pan/nd on 8/9/13 12:14pm
Msg #479804

Gotta have an ARM (and a hand) to play a HARP n/m

Reply by CopperheadVA on 8/9/13 12:20pm
Msg #479807

I had something similar recently, except that loan began adjusting after 7 years. Just saw Greenlight advertising on TV this AM - I think it was 3.5% for 10 years and no closing costs. The ad didn't give any specifics but I was thinking it must be fixed for 10 years and then begins adjusting.

Reply by JanetK_CA on 8/9/13 4:19pm
Msg #479853

I've seen quite a few 7-yr ARMs over the years, including some recent ones. Used to see lots of 5-yr, also. In theory, these do make sense for lots of people who don't plan to stay in that home. But as we saw with the last downturn, who knows what might happen - or if they'll be able to sell or qualify for a refi. Lots of people who are underwater with their properties said back then that they weren't planning to stay... (And now are needing the HARP loans, as a result.)

Most of the ARMs I see these days are high-income earners with big mortgages. It's hard to know if they're just being savvy about their investments or if they're over-extending, but thankfully that's not our concern. For us, they just mean more work - so I hope there are plenty of people out there for whom these loans make sense.

Reply by Luckydog on 8/9/13 4:57pm
Msg #479858

We will be seeing more ARM's soon anyway because the fixed rates are climbing pretty fast again. They are good for some people, other's need to know what to do if they plan on keeping it. It's a gamble on how the rates will be going when the thing nears expiration.

Reply by notary4az2 on 8/9/13 6:49pm
Msg #479878

I signed a person yesterday whose credit score was below 500 and 6.5% interest rate - Here we go again is correct!!

Reply by Ali/IL on 8/9/13 7:34pm
Msg #479886

I did one yesterday also with a 6.50 ! And, docs were going back to an attorney in another state.