Question by Roadfuzzz: Is is possible to refinance to a low interest rate if?
Can I refinance to a low fixed rate if I’m upsidedown on my mortgage? I have an ARM that will adjust in a few years, so I’d like to refinance to a fixed rate. I’ve never missed or been late on a payment for over ten years. Any advice would be appreciated.
Best answer:
Answer by J.J.
You may be eligible for a loan modification program. This is different from a re-finance. A re-finance will be pretty much impossible for you if you are upside down. A re-finance does not reduce your principle (ever), and that is what you need if your are upsidedown.
A mortgage modification might help reduce your principle, although banks have been reluctant to do this even though that is exactly what the program is there for. You need help finding a good loan modification program.
First, go to this site:
http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
This site will help you find a certified HUD counseling agency in your area. HUD counseling services get federal funds to counsel home-buyers and home-owners. Many of them are offering very good advice to home-owners who are wanting mortgage modifications. They may also help you work with your current bank to get a good modification.
Do not go to just any “counseling service” as there are SHAMS out there – go to a certified HUD counselor only! And if they give you any grief or problems report them to HUD!
Also, a loan mod should REDUCE your monthly payments. If it doesn’t, then it is not working!
Good luck!
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