Q&A: How to refinance a mortgage?

Question by Joseph: How to refinance a mortgage?
My daughter is having difficulty paying her mortgage and wants to refinance. If she has an appraised value of $ 300,000 and a mortgage balance of $ 284,000 can she refinance from her 25 year 9% mortgage to a lower rate without big problems??

Best answer:

Answer by cainvest1
Depends on her credit and how the comps come in. A 9% loan indicates her credit likely wasn’t great to start as that rate has not been floated for a while.

Have her talk with a lender to see if she qualifies for a refi or a loan renegotiation as laid out by the Obama administration.

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2 Responses to Q&A: How to refinance a mortgage?

  1. Iffy says:

    She can’t unless she can come to the table with cash. No lender will give her a mortgage for more then 240k.

  2. Bob says:

    With adequate income and a credit score of 620 or higher FHA financing is available for up to 97.75% of appraised value. The fact that she is “having difficulty paying her mortgage” and the 9% current rate could be signals that her credit is less than spotless. Refinancing with late house payments of 30 days or more in the past year is just about impossible these days. FHA also has maximum loan amounts that vary by county that could also be a factor. Where I live the maximum is $ 271,050 though there are many areas where the limits are higher. I have attached a link to check the limits in your area.


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