Question by email@example.com: how to go about refinancing a mortgage that is already more than the house is worth?
Answer by um-kay
not a good idea and I doubt the bank will approve it. If the loan would default then the bank would have no way of recovering all the money financed. You can usually never borrow more than the home is worth. If you ended up losing the home and the bank had to sell it they would have to take a hit and recover much less than what they lent out. They are more eager to give a loan in the amount that is less than what the home is worth. That way they would make a profit if you default on the loan.
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