Question by sully5408: Can I refinance a home that has an upside down mortgage?
I have a 30 year fixed mortgage FHA. Can I refinance this for a lower intrest rate without having to bring what I am upside down on the mortgag? Any ideas
Answer by Bruce Qualters
if you can pay the closing costs on the loan out of your pocket you can get an FHA streamline refinance done. It does not require an appraisal though you will most likely have to pay the total closing costs minus the new up front mortgage insurance premium.
The only exception would be if you have been in the home for a significant amount of time.
Closing costs are reduced on a streamline so not as bad as a normal refinance. If you are in a state where recording tax stamps need to be paid on the full amount of the new mortgage you can generally alleviate that cost by refinancing with your existing lender or through a broker that can arrange the transaction through your current lender. Quickest way to determine if a broker is an option to get a price comparison from your existing lender would be to google the name of your lender followed by the word wholesale if they have wholesale then they work with brokers.
What age of reason has said is completely false there are a huge number of instances where financing can exceed 80% of the value and even cases where it can exceed well over 100% of the value. see HUD link
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