Conventional loan underwater

Hello VJones, Your second mortgage cannot be refinanced under HARP, and you cannot pay off your piggyback mortgage with funds from your HARP refinance. However, you can work with your current mortgage company, or another mortgage company, to refinance your piggyback mortgage at the same time that you complete a HARP refinance possibly without an appraisal. Since it sounds like you are working with a lender on the 1st Mortgage I would continue that process and immediately contact the 2nd mortgage company and see if they can offer you better terms without an appraisal. All other options to pay the 2nd off would require a full underwrite and an appraisal.

If your second loan is purchase money, you may be able to combine the two loans using the HARP Program.

I don't know of any way for you to combine the first and 2nd unless you have 3.5-5% equity in the property for the new mortgage. Also, if your first is at 5.18 the benefit of refinancing right now would be very liminted. Good luck!

The second mortgage can NOT be combined with the first under HARP, and you can not take out cash under HARP. All you could do is refinance the first mortgage, and leave the second one alone. The only way to combine the two is with a standard loan where you would need a little equity. www.HARP-Refinance-MN.com

There are no conforming loan refinance products available or projected to become available, that would allow you to combine 2 loans into one and still be underwater.. You can however refinance your first, but current rates are higher than they were a year ago, so there might not be enough savings to make it worth it.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com