Combining 1st and 2nd mortgage for HARP refinance?
Our first mortgage is an ARM with a low interest rate. Our second has a 14+% interest rate, combined both loans are less than 125%. We wanted to combine what we owe on both loans into a 30 year FRM and we were hoping to do this under the HARP program. Is this an option? by jason._636_368 from San Diego, California. Nov 15th 2011
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Unfortunately you can only refinance the first mortgage under HARP and the 2nd has to agree to subordinate, which is not an easy task... WilliamAcres.com
Kiyoshi Inui (Kiyoshi)
#539 ranked lender in California - 111 contributions
Unfortunately you can't consolidate using "HARP". Although there are other temporary government programs that allow you to consolidate your 1st & 2nd mortgage at a high loan to value. It all comes down to the appraisal, but you are very fortunate to have the "HARP" program as a back up plan. You can always subordinate the 2nd to update the Rate & Term of your first mortgage if the appraisal came in lower than expected. Give me a call if you would like to briefly go over your options. Kiyoshi 619-822-2407
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
As currently laid out, and even with the enhancements anticipated with the release of HARP 2.0, you will probably NOT be able to combine the 1st and 2nd into one new loan. If your current first is FNMA or FHMC owned, then it could be refinanced at a lower rate. One of the features of the new HARP is that most if not all 2nd mortgage lenders will subordinate. The best thing would be to Refi the 1st at a lower rate. Take the monthly savings on the new lower payment and apply that as extra principal to pay off the 2nd as soon as possible.
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