Discovery could save Indiantown family $750 a month

An Indiantown family could soon be saving $750 a month on their mortgage, and it's all because of a little digging.

When Jacqueline Conner's refinance application was denied, she decided to take action.

Conner and her husband first refinanced their Indiantown home in 2007, putting the money towards renovations. They are trying to refinance again with HARP, the government's Home Affordable Refinance Program, but there have been problems.

"When they put their application in they explained to me there was a problem with the application that they kept getting an error message," Conner said.

It turns out the Conners were first denied because they have LPMI, or lender paid mortgage insurance.  But the Conners didn't know there was an LPMI policy on their loan.

"When we did the original paperwork we were never told that we needed to have mortgage insurance on the house," Conner said.

Paul Baltrun, with the Homeowner Assistance Division at the Paul Krasker law firm, said LPMI is a sticking point for HARP.

"If a mortgage insurance policy is purchased by the lender to help guarantee the loan, that policy will cause a problem," Baltrun said.

Conner said after making a lot of phone calls, she finally got some answers.

"The gentleman from the company told us we were actually paying for this through a higher interest rate on our mortgage," Conner said.

So what should you do if you think there's an LPMI policy on your mortgage by mistake?

"Review you loan documents, it should specifically state in your loan documents that you have LPMI and then you can also contact your lender. I would put something in writing to your lender, requesting information about LPMI on the loan and the terms on the loan," Baltrun said.

Baltrun said if you have private mortgage insurance, that shouldn't be a problem qualifying for HARP.

Meanwhile, the Conners are still working with their bank to try to refinance their home through HARP.

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