Hello. Beware of bankers bearing gifts. There Ain't No Such Thing As A Free Lunch. These thoughts crossed my mind when a rep from my bank called up this morning, offering to help me get on the HARP program. However, I thought the fine people here might be able to throw some advice my way.
I currently have a 30-year fixed with 26 years to run at 5.125%. The offer is to make it a 25-year fixed mortgage at 3.875%. This would save me about 90 bucks a month. Closing costs will be covered by the bank.
Has anyone else had an experience with HARP? My gut tells me this is too good to be true. How can the bank possibly benefit from this? It seems like they are guaranteed to lose money on this deal.
Your input is appreciated.