Difficulties with Lender regarding Harp- got to the end and loan was adjusted downward

It sounds like your 2nd is holding you hostage.. a call to Greentree might be in order.. But in any case, it is common to get a higher interest rate to pay for closing costs.. I would have never recommended using your original lender to refi, but your already there.. And 3.99 is within the realm of reasonable.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

I would call Green Tree and see what the deal is with them, if that really is what's going on there. But it does sound like that is something that could be legit. If you find out that everything is as they say then increasing the interest rate a third of a point to cover all those closing costs would not be such a bad idea since you don't have the money. Raising the rate creates a credit back to you, FKA "yield Spread Premium" and that will cover those costs.

Sounds like a bait and switch to me, but it could be correct. I would just raise the interest rate to 3.99% and be done with it. I think you payment would increase maybe 25.00 per month at the new rate. Not a big deal.

The answer is correct and not bait and switch as I am working with a borrower now who also has Green Tree and required new loan size not to exceed principle balance. GMAC has no option but to increase rate so you dont need to come to closing with money. Greentree is not a friendly bank and are going off requirements that were signed at closing for that 2nd mortgage and have no choice but to follow the terms set when you took out mortgage. This is the only 2nd mortgage Co. that I know off that doesn't allow you to roll in cost on subordination and is not common.Good luck!

Everyone has good advice here. I agree it's best for you to contact Green Tree first. I had the same problem with a client. We contacted the second mortgage lender and explain the error of their ways and that they were holding the 1st mortgage hostage and potentially putting themselves at more risk. They did agree and we were able to go ahead with the loan amount. If contacting them doesn't work, the 3.99% really isn't that bad, especially if all of your closing costs are covered by your lender.

I'm not surprised you're having this issue and would probably have put together a similar scenario to address it. Lenders generally do not need permission from their customer to transfer the servicing on either the first or 2nd mortgage to another lender, one of the many papers you signed at closing. I think this us a better deal for you anyway, you are not increasing the balance you owe on the house and the minimal difference in your payment still puts you in a much better position than you were. Take the deal!

Many problems arise from seconds during HARP 2. At this point take the 3.99 and have your monthly savings.

is this a fannie or freddie??