Can a mortgage with LPMI be refinanced under HARP 2? If not what is an option for an underwater mortgage to take advantage of lower interest rates?

Asked by Ordonez12, 07726 Wed Jan 11, 2012

Help the community by answering this question:

+ web reference
Web reference:


Larry Sarlo, Agent, North Wildwood, NJ
Wed Jan 11, 2012
When HARP 2 is implemented if your current mtg has PMI then your HARP refi will have to be re issued... will take a little longer for process more than likely ... Make sure you take that in consideration when applying for the HARP2

If you do not have PMI then your Refi will not have to have PMI

Search foreclosures and short sale here:
Search the MLS on your phone by Text: In the subject line on your mobile phone- LSAR1 -to number 87778 ... hit send... A GPS feature for listings at your finger tips
Larry Sarlo
RE/MAX Preferred
609-868-1171 call / text / email 7 days
Web Reference:
1 vote
Joe Cordova, Mortgage Broker Or Lender, Marlton, NJ
Sat Jan 14, 2012
Joe Harvey provided the perfect link to answer this question below. I would make sure you truely have LPMI and not the standard monthly MI. If you have the monthly MI you will still be eligilbe for Harp 2.0. Fnma and Freddie Mac will implement this product into their underwriting engines, DU (desktop underwriting) & LP (loan prospector) in March. All lenders at that time should be able to refinance the loan with no appraisal requirement. Right now we have seen some of the servicing lenders already originating these types of loans.

HARP 2.0 is designed to help homeowners with or without private mortgage insurance (PMI), but the government’s revisions specifically excludes homeowners that chose lender-paid mortgage insurance (LPMI).

LPMI is mortgage insurance that’s built into your rate. If your mortgage statement itemized your monthly PMI, you have borrower-paid mortgage insurance and are thus eligible. All other mortgage insurance types are ineligible–including single-premium insurance.

Source: (
0 votes
Rudy McDowell, Mortgage Broker Or Lender, Bloomfield Hills, MI
Thu Jan 12, 2012
Hi, Ordonez12. The short answer is: No. Under current HARP2 guidelines, you cannot refinance thru the HARP program if you have a LPMI loan. Possibility that could change once the program officially roles out (supposedly by end of Janauary), but highly unlikely.
0 votes
Ordonez12, Home Buyer, 07726
Thu Jan 12, 2012
I read on the Fannie Mae website the following but some say no still? I don't understand. Can anyone help?

Are existing Fannie Mae loans with lender-paid, primary MI coverage eligible for Refi Plus?
Existing loans with lender-paid primary coverage are eligible for a same-servicer refinance under Refi Plus with manual underwriting, and it is the servicer’s responsibility to ensure continued coverage.
Existing loans with lender-paid primary MI coverage that were purchased by Fannie Mae before June 1, 2009 are eligible for DU Refi Plus. For different-servicer refinances, the lender must obtain MI coverage at least at the existing level.
0 votes
Joe Harvey, , Saint Paul, MN
Thu Jan 12, 2012
You will find your answer to whether Loan is eligible for HARP Refinance with LPMI under #3 in link provided.
0 votes
Marsha Bowen…, Agent, Livingston, NJ
Wed Jan 11, 2012
Greetings Ordonez,

It's very possible that your mortgage could qualify for a refinance under HARP2. If I were you, I would contact your current lender to see if they are participating in the program as there is a certain percentage allowed for underwater mortgages. If they are, and your loan is a Fannie or Freddie loan, you might qualify. If you want more specifics on the program, I actually have a blog with more details right here on Trulia.

Good luck to you!
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more