HARP 2 Penalty for 2nd Mortgage?

Your bank doesn't know how to describe the HARP program. That's your first clue to run the other way. This sounds like a disaster in the making. Please find a Licensed Non-Bank loan officer to work with. If you cannot locate one, please contact me and I will give you a couple of names.

Yes and no.. The penalty you're referring to is not a penalty, it's a pricing adjustment. It has to do with how much rebate the lender receives for selected interest rate. Your interest rate does not go up 1.75% because you have a low LTV.. FNMA pricing CAP is 2% if your LTV is below 80% ... but I would also agree with the other posts here.. it sounds like your loan officer isn't explaining things to you correctly.... so I would agree that you need to be dealing with a local mortgage broker, not the big bank or your existing lender.. 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. 480-287-5714 WilliamAcres.com

What?.. Contact a Local Lender and get away from the bank. There is not penalty for having a low LTV, but there may be a hit to that rate for having a High CLTV - both loans together. 1.75% seems high so get a 2nd opinion from a LOCAL lender and not a bank. They are unlicensed order takers that don't know the business.

They do not know how to input your loan to give you the best pricing a common mistake. Call me and I will help you get the best pricing with least pricing adjustments. Jack C 734-395-9027

Still believe you need to speak with a non bank mortgage pro in your area, something sounds off for sure!

Either they are explaining incorrectly or you are understanding incorrectly because this does not sound accurate.

There are adjustments for having a CLTV over 95% but the "adjustment" of 1.4% should already be covered in the rate their quoting you. Call me and I' quote you a rate. 517-489-2440Thanks Gus DahlgrenNMLS #80625

If your LTV is lower than 80% than you do not qualify for a HARP program but may qualify for a conforming refinance.

Yes and no.. The penalty you're referring to is not a penalty, it's a pricing adjustment. It has to do with how much rebate the lender receives for selected interest rate. Your interest rate does not go up 1.75% because you have a low LTV.. FNMA pricing CAP is 2% if your LTV is below 80% ... but I would also agree with the other posts here.. it sounds like your loan officer isn't explaining things to you correctly.... so I would agree that you need to be dealing with a local mortgage broker, not the big bank or your existing lender.