• Underwater & Have 2nd Mortgage – Yes you can Refi!

  • Question of the Month: Can you Refinance with a 2nd Mortgage?

    There is a belief out there that you cannot take advantage of the HARP Refinance Program if you have a 2nd Mortgage. Yet this is dead wrong. The Loan-to-Value ratio applies to the 1st Mortgage ONLY and has nothing to do with the 2nd.

    Our record in dealing with HARP refinances and 2nd mortgages is perfect. Every existing 2nd mortgage lender has agreed to subordinate or go back behind the new 1st mortgage. And 60% of our closed refinance transactions in December had a 2nd mortgage, so that is good news for folks here in Michigan.

    There have been many changes to the HARP program recently. Guidelines have become more flexible to allow people to refinance. If you are greater than 25% underwater or have a 2nd mortgage, you can still refinance and take advantage of these historically low interest rates.

    To be eligible for HARP 2.0, you must have closed on your loan prior to 5/31/09. You can find more details on HARP 2.0 here.

    Doesn’t matter if you are underwater or have a 2nd mortgage, call us to discuss your options as we can help!

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    • Great information on Obama’s mortgage program. Be sure to update your clients that a HARP Refinance will work however it will require a subordination from the 2nd mortgage lender to be approved. Thanks for the info.