Good points overall, but I'd push back a little on sticking with HARP. A few thoughts:
- HARP was great, but it's pretty outdated now—other options may offer better flexibility.
- Conventional refinancing fees can be steep upfront, true, but if your credit's improved significantly, the lower interest rate might offset those costs faster than you'd think.
- Also, some lenders waive or roll closing costs into the loan itself, so you don't get blindsided upfront.
Definitely crunch the numbers carefully...but don't dismiss conventional refinancing outright just because of past experiences.
Good points here, especially about crunching the numbers carefully. I went through something similar a couple years back—initially thought HARP was my best bet because it had worked well for me in the past. But when I actually sat down and compared options, conventional refinancing turned out to be surprisingly competitive.
A few things I noticed from my experience:
- My credit score had improved quite a bit since my original mortgage, and that opened up better rates than I'd expected. The difference in monthly payments was enough to offset the closing costs within about two years.
- Like you mentioned, some lenders do roll closing costs into the loan itself, which can ease that upfront burden. Just be cautious here—rolling costs into your loan means you'll pay interest on them over time, so it's worth doing the math carefully.
- Another thing I discovered was that conventional loans gave me more flexibility down the road. With HARP, I felt a bit boxed in; conventional refinancing allowed me to adjust terms more easily later if my financial situation changed again.
I wouldn't completely rule out HARP if you're really underwater or have limited equity—it's still helpful for certain situations—but it's definitely worth exploring conventional refinancing thoroughly before making a final decision.
Interesting perspective, thanks for sharing your experience. I'm still pretty new to all this refinancing stuff, so it's helpful to hear how things played out for others. My credit score isn't amazing, but it's definitely better than when I first got my mortgage. I'm wondering if that improvement alone might make conventional refinancing a better option than HARP at this point.
One thing I'm cautious about is rolling those closing costs into the loan itself... paying interest on fees doesn't sound great to me, even if it does ease the upfront cost. Did you find it tricky to figure out exactly how long it'd take to break even on those costs? Seems like there could be some hidden variables or surprises down the road that might throw off the math...
Your credit score improvement definitely opens up more options, but I'd caution against dismissing rolling closing costs into the loan too quickly. Sure, paying interest on fees isn't ideal, but sometimes preserving your cash flow upfront can be worth it—especially if you have other debts or expenses to tackle. When I refinanced my own place, I found using an online refinance calculator helpful to estimate break-even points. It's not perfect, but it gave me a clearer picture without too many surprises down the road...
Good points on the calculator—I found those helpful too. But isn't HARP pretty much phased out now? Might wanna double-check if you're eligible or if there's another refi option that fits better these days...
