Question by Danny S: Can we refinance a house that is now worth less than the mortgage?
We bought the house in 2006 for about $ 251,000, put 20% down and have a mortgage of about $ 194,000 left for 30 years at 6.6% interest. Looking at the house value, it is now probably only worth about $ 190,000 or so and want to refinance with new rates at about 5%. We have never been late on the payments and cannot show a financial hardship. Any suggestions?
Best answer:
Answer by ☼AstrologerJuliAnne☼
Believe it or not, you actually would probably qualify to refinance with the new bill that was signed to help homeowners who are underwater. Your loan to value is still manageable. Call your lender and see what can be done. If you can qualify for the 5% rate, that would be a good savings for you!
Even IF you had to come to the closing with 4k, that still would be worth it.
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