How can I get a High-LTV ration mortgage refinance loan?

Question by JeepGuyNewYork: How can I get a High-LTV ration mortgage refinance loan?
I have a recently purchased Condo in DC with a value that continues to tank with the economy. Currently have 2 mortgages on it making the LTV somewhere in the neighborhood of 110 percent. Looking to refinance (I have relatively high income, excellent credit) Property value approximately $ 250,000 and I owe $ 270,000 combined. Anybody know if I can even expect to find a lender in this economy willing to lend in this situation?

Best answer:

Answer by OldJimmy
I haven’t seen anyone making high LTV loans lately. It’s going to be tough to find one.

If you have a good payment history with your lender, I would contact them and ask them if they have a rate modification program. They do this to keep good customers from running off to other lenders via refinancing.

For a small fee (maybe 300-500) they agree to reduce your interest rate, with the principal balance and original maturity date remaining the same. It won’t be quite as good as the best rates on the market today, but it will be close and if it is lower than what you are paying now your payment will go down. And the low cost to do this makes it pay off very quickly.

Give this a shot, and hopefully they won’t realize that it is going to be difficult for you to leave them.

Alternatively, if you can find a way to come up with some cash to bring your loan amount down, you have some other alternatives. About a year ago, Bank of America was offering 95% financing with no PMI to customers that had nice deposit accounts with them. And no closing costs. I don’t know if this is still available (check out their web site to find out) but it was a great deal.

Know better? Leave your own answer in the comments!

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