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What is a HarmonyLoan™?
The HarmonyLoan™ is a consumer friendly mortgage product that gives greater economic
security by providing member-initiated interest rate changes at the "click" of a
button. In other words, when interest rate fall, you simply "click" a button to
lower your rate without going through a painful, costly refinance.
What mortgage products are available under the HarmonyLoan™?
Conforming and Jumbo 30 year fixed, 15 year fixed, 5/1, 7/1, and 10/1 ARMS.
Why take a HarmonyLoan™?
The HarmonyLoan™ program allows you to lower your interest rate with No Points!
No Closing Costs!! No Kidding!!! Rather than go through a painful costly refinance
where lenders charge you points and closing costs that can add thousands of dollars
to your loan, we offer you the ability to simply "click" a button to lower your
monthly payment with no points and no closing costs when interest rates fall.
How does the HarmonyLoan™ work?
Borrowers manage their own modification through our state-of-the-art web technology.
- A simple "click" will lock in new terms (rate & fixed period);
- Must wait 6 months after closing before the first opportunity to "click" (modify);
- After first 6 months can only "click" every 120 days; and
- Loan must be current with NO late payments in past 12 months.
What does the Homebuyer/Borrower get when they "click"
the reset button?
- For the 5/1, 7/1, and 10/1 ARM the Homebuyer/Borrower receives a new fixed rate
portion of their ARM with a new interest rate (possibly lower, but could stay the
same or be higher, depending on market conditions) For example, if you have a 7/1
ARM and after 3 years you "click", you receive a new rate fixed for another 7 years.
- For the 30 year and 15 year fixed the interest rate upon each "click" can only go
down and never back up.
Why would I click the button at a higher interest
rate on the ARM?
- If you have an ARM and you are nearing the end of the fixed rate portion, for example
you are in your 4th year of a 5/1 ARM, you may want to "click" the button at a higher
rate to lock in another five year fixed rate. Remember, if rates fall during the
new 5 year fixed rate you can always "click" the button again and lower your rate.
- If you "click" the button on the 7/1 you get a new fixed rate for seven years. If
you "click" the button on the 10/1 you get a new fixed rate for ten years.
Do I need to qualify when I go through the HarmonyLoan™
again?
No! There is no new appraisal, no underwriting, no credit check, and no hassles!!
Are there truly NO closing costs when I "click" the
button?
Yes! Closing costs are normally associated with a refinance. Closing costs on a
typical refinance can range from $2000-$10,000 and more. We call that the OLD Way.
Welcome to the NEW Way: The HarmonyLoan™! When you "click" the button to reset your
rate there are NO closing costs added back to your loan.
Will my loan term start over again?
No. When you lower your interest rate under the HarmonyLoan™ your remaining term
stays the same. For example, if you "click" the button after 12 mortgage payments
on a thirty year amortized HarmonyLoan™, you will still only have 29 years left
on your mortgage.
If rates go down further, can I go through the HarmonyLoan™
again?
YES! That is one of the greatest advantages of the HarmonyLoan™. You can go through
the HarmonyLoan™ as many times as you want provided you meet the conditions in the
HarmonyLoan™ parameters.
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