Are HARP 2 interest rates the same as if someone is buying a home with a 20% down payment?

In short, no... HARP rates will be higher, and they should be... A lender is financing a property with an "Unlimited" loan to value, and exposing themselves to huge losses in the event of a loan default... rates are determined by a Risk Vs. Reward... the greater the risk, the higher the reward (rate) will be... on the surface, someone putting 20% down on a new home purchase is a very safe product, and has one of the lowest default rates of any mortgage product out there... WilliamAcres.com

No...HARP rates will be slightly higher. However slightly higher, the HARP rates are still great rates especially considering the risk.

This really depends on the scenario when comparing apples to apples. I actually priced out a HARP loan that was lower than a conventional loan based on a 677 score last week.I only lend in Florida!

I agree with most of the answers that HARP rates will be higher - but they are not that much higher. I just quoted a HARP loan and it was only .125% higher than same loan with 20% down. The borrower was saving over $200 a month so it was still worthwhile for her to refinance. Find a good broker in your area on Lender 411 and see if it makes sense for you to refinance.

No. When someone buys a home with 20% down, you are assuming a big part of the risk, because you are making an investment too. The bank is only lending 80% of what the home is worth. Under HARP, they are lending against "Phantom Value" because they are lending more than 100% of the value of the collateral. This means they will charge more for the additional risk they are willing to take. Whatever you do, Don't use the big banks. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com