which loan?
Is this for a new purchase loan or to pay a lump sum of 40% on your current loan? I assume that the 3.5% rate is for a 7 year arm? as 5 year rates are lower. Either way, my advice is to make sure that you are confident that you can pay off the loan within the fixed ARM period and/or have back up savings for security. ...

Underwater, need help.
Everything has been explained in these answers. I do advise shopping for the best rate and lowest costs. I own my own mortgage company which allows me to offer extra competitive rates. Bob McCormick, PresidentWww.mccormicklendinggroup.com

Refinancing under HARP2 and want to buy a 2nd home as primary residence soon after closing on re-fi.
Yes, your friend is correct. Being that you are given owner occupied rates. However, you may be able to qualify this as a rental home now for full disclosure to lender (as Harp 2.0 allows this). Bob McCormick

Hello, Fannie Mae has me at a EA 3?
I can do it for you. Bob McCormick 714 362 4740

I am looking to refi throughout the HARP 2 refinance program.
Sure can- we do both Fannie mae and Freddie mac. Feel free to call at anytime. I own my own company so am very competitive on rates and fees. Thanks, Bob McCormick480 905 1135. Www.mccormicklendinggroup.com