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HARP only allows for a reduction in the rate on the first mortgage. Paying off a second mortgage is considered a cash out transaction, and those are not allowed. Asking FNMA will do no good, it’s been a hard and fast rule since the first day HARP started.
If you’re able to lower the rate/payment on the first, and if the second is presumably at a higher rate, consider using the monthly savings on the first to pay more on the second and get it paid off sooner. At least it would be better than nothing!
If there is no cap on LTV of a 1st lien refi, why can’t we pay off a 2nd lien HELOC (ARM) and have a 133% LTV? What is the difference? Can we ask FNMA?
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