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Refinance through HARP with HELOC

Struggling with trying to refinance my house to lock in the historical low rates. My original loan amount is 279,000 and I'm down to 240,000, the house will appraise at 300,000, my primary mortgage is a fannie mae serviced by etrade.  I have a HELOC with Chase, the credit line is 161,000, but I owe 135,000 on it.  

I wanted to roll both into a single 15 yr fixed mortgage. I currently have a 7yr fixed loan, but I would like to lock in the low rates.  I called Chase, they wan't do a refi for me because my primary mortgage is not through them.  Everyone I have talked to says because I have the HELOC, HARP isn't available.  I'm underwater for sure, what are my options:
 
Is subordination a option, if so which lender will work with that will Chase cooperate?
Should I go ahead and turn my heloc into a 2nd start paying the principle, if I do that will that make it harder or easier for subordination for refinancing both loans into one?
Any other suggestions?
 
  • June 21 2012 - Temecula
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Answers (3)

Refinance of your primary loan with subordination of the second is the way to approach this.   Chase approves pretty much all subordination requests for HARP refinances, haven't seen them give any trouble whatsoever on any of them.

It sounds like your second has the conversion option, which at this point I would not recommend, to convert to fixed with that option will likley double your existing rate. You might want to consider stretching your primary out to 30 years, so you can funnel all the extra cash into paying down the second at an accelerated pace with goal to retire in as quick as possible.

I'd be happy to review optoins with you if you would like to contact me through my profile.

  • June 21 2012
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Profile picture for Brian GFL Capital
Like James mentioned you can not consolidate with the HARP. The program limits you to $250 max cash back and debt consolidation is considered cash back.

Other than that you shouldnt have a problem refinancing. Not sure why Chase wouldnt want to deal with your scenario, but it shouldnt be hard to find a home for your loan.
  • June 21 2012
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You can only do a HARP on the first loan and just submordinate the second mortgage
  • June 21 2012
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