How can I get me second mortgage combined with my 1st when combined I am underwater?

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Home value is $205,000.00. First mortgage is 151,000.00 second mortgage is $55,000.00. Both are with the same lender. I have heard that HARP allows up to 125% of the value – do they take the second mortgage into consideration.


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HARP is a program that ONLY allows a current first mortgage to be refinanced to a new, lower rate first mortgage. Second mortgages cannot be combined, whether they were done at the time of purchase or afterwards. There is no way you’ll be able to roll the two together, but if you’re HARP eligible, you may at least be able to save some on the monthly payment for your first mortgage. Need more advice? Glad to help, I lend nationwide. Thanks, Ted

Answered 2 months ago
Ted Rood
1091 6

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HARP can be a refinance option for your first mortgage. To be eligible you cannot have missed a payment in the past 12 months and your mortgage must be a Freddie Mac or Fannie Mae.

FHA also offers a refinance option for underwater mortgages. It is called a short refinance. Not all lenders will participate in the program because it requires them to forgive the difference between 97.75% of the appraised value and the mortgage balance. It appears from the FHA fact sheet that it can include secondary mortgages.

Reference: http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/short-refinance.aspx

Answered 2 months ago

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