No Wells Fargo refinances for severely underwater homeowners unless already a customer
by Kim Miller
Wells Fargo said late Monday that because of the “current market environment” it will not offer refinances under the new Home Affordable Refinance Plan to deeply underwater homeowners unless they are already a Wells Fargo customer.
The company, which responded too late to a Palm Beach Post inquiry to make it into today’s story about the floundering HARP 2.0, said the maximum loan to value ratio it will allow for loans not serviced by Wells Fargo is 105 percent.
The loan to value ratio is how much is owed on a mortgage compared to the value of the home. To figure it out, divide your estimated home value by the remaining amount you owe on your loan.
For example, if you owe $150,000 on your mortgage, but your home is worth only $100,000, your loan to value ratio is 150 percent, meaning you owe 50 percent more on your mortgage than what your home is worth.