how do i refinance my house when I owe more than it is worth?

Question by HomeownerEAC: how do i refinance my house when I owe more than it is worth?
Our Adjustable rate mortgage is about to “adjust”. Unfortunately home values have plummeted in our area. We want to refinance to a fixed rate loan but wonder if it’s possible when our current loan balance is more than what our house would be appraised for.

Best answer:

Answer by golferwhoworks
the only way is to streamline with out an appraisal. You may be bringing cash to close as this note is so new but it beats the heck out of letting it adjust. Get with your local mortgage professional to see if they can make this happen
I am a mortgage banker in TN & KY

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4 Responses to how do i refinance my house when I owe more than it is worth?

  1. mamamia says:


  2. David M says:

    Bottom line you can’t. I suppose the bank you have the ARM with will do something for you as their only other option will to be to foreclose which they won’t want to do. Talk with them and see what they’ll do. In the meantime, cut your expenses and increase your income if you can and work on paying down this debt.

  3. debijs says:

    ~~You may not be able to refinance, however call your mortgage company. Many of them are letting customers streamline their current loans to set interest rate loans. You will have to keep the current loan amount despite the decrease in your home value.

    This way you get a low interest rate that you won’t have to fear will skyrocket when interest rates begin to rise again.~~

  4. Bob says:

    If you owe more than it’s worth you will never get a loan. What would you use for collateral?

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