A client bought her rental property in 2005 and, as so many people experienced, saw the value of her 2 units go from 350k to 250k. So she was stuck at the 6.5% 30 year fixed.
Now that values have increased, she was able to get an appraisal on her units for $330,000. We didn’t quite have enough equity for a regular loan, but we were able to get her a HARP loan, yes, on a rental, and save her almost $500 per month AND cut the loan down to 20 years so that she doesn’t lose any time. Win-win-win!! – All this on a NO COST loan. Now that’s money working hard!
Please note that the HARP program ends in December, so if you know anyone who has little equity, has high debt ratios, or poor credit, this might be the solution for them.