Refinancing to avoid PMI.

It's not necessarily true, but it is very common.. There are no conforming guidelines for 2nd mortgages, so the banks who issue these types of loans can make up their own rules.. there are a few out there that will do fixed 2nd's, but most only do variable (ARM)... and the rates are almost double what is available for these 2nd fixed rate mortgages, so for that reason, your much better off taking the ARM for the 2nd.. The rate will be much lower.. 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

Hello Susan,Depends on the lender...Most offer variable rates on open ended home equity line of credits (2nd mortgages). In addition, most variable rates are about 2% lower than a fixed second mortgage. Keep in mind that I am generalizing but accurate for the most part. I do have a question--- How long have you had your mortgage? I may be able to give you another option.Thank you,Ivan Diaz

Susan: You mention refinancing to avoid PMI. Do you mean to say that your initial loan(s) were a Fixed 1st and a Variable 2nd? That was very common not so long ago. If you are trying to refinance them both into one loan, you cannot currently be underwater. Otherwise, refinancing only the 1st could be your only option under HARP. Also, 2nd mortgage lenders are sometimes willing to modify your Variable rate 2nd into a fixed rate. Depends on your lender. Some are very generous, but keep in mind, the fixed rate on a 2nd won't be even close to the rate on a 1st.