Question by Dan: Are there currently options for refinancing if you are upside down in your mortgage?
I took out a second and did home improvements to my home…just in time for the market crash. I’m now either barely even, or a little upside down. Are there any options to refi to a lower rate, or do I need to wait for values to climb again?
Answer by skr
Wait. I mean are you planning on going anywhere? If not stay put you really have no choice other than bankruptcy, foreclosure, loan modification or selling the home and taking the loss….not great options are they?
Know better? Leave your own answer in the comments!
Unless you’re planning on walking away from your home, the best bet is probably to wait until the market recovers. If you have little to no equity, no one is going to refinance you unless you put up additional equity at closing. You might consider such an option as throwing good money after bad, but if you’re going to be living in the home for a long time, and your current interest rate is high, it may be something to think about.