Can I Get a HARP Refinance with a 2nd Mortgage?By
- In most cases the lender you choose for the new HARP refinance will do the work to get your 2nd loan subordinated.
- Of course it won’t hurt to let your 2nd mortgage lender know that you are refinancing your 1st lien and you will need their cooperation in the subordination process.
- Ask how much they charge for the subordinating. (2nd lenders fees will vary)
- Find out if getting the check to the 2nd lender upfront will streamline the process.
Unfortunately not all mortgage companies handle the subordination the same. If you are a hands’ on person who wants to help out then you need to know this up front. Most borrowers do not want to deal with this, so they let their HARP lender handle the process of subordinating the 2nd mortgage. According to Pat O’Connell of VIP Mortgage in Orange County, choosing lenders for HARP is important. “It is imperative that you feel confident that your lender can handle the subordination process, because the average loan company will drop the ball.”
Refinancing with HARP Can Save You Thousands of Dollars a Year!
If you want to refinance with HARP will save you money every month than most likely it will be worth it for you to move forward even if you have to deal with a subordinating a 2nd loan. We suggest adding 15 days to your rate lock or floating the rate. For example, if you were refinancing with a 30-day lock, stretch it to 45-days if you have a second mortgage.
Today’s HARP rates have fallen to 3.5% (APR 3.74%) on thirty-year terms and 2.875% (APR 2.97%) on fifteen-year options. So use the rate calculators and do the math so you can determine how much you are saving. If you can save $600 a year then it is likely worth your time. If you are saving $2,000 or $3,000 a month like many of our clients then it is certainly worth the time. Take a few minutes and apply online for unique refinancing even if you have a 2nd mortgage the option is available for a HARP refinance.