Question by Mark B: Can I refinance my mortgage with no closing costs if I owe more than it is worth?
I already have a 30 year fixed (6.38%) but would like to take advantage of the lower rates now. My mortgage is through SunTrust and (unfortunately) I have never been late with payments and am not in any financial distress. The main problem is that because of the current market, I owe more than what it is worth.
Is this possible without bringing any money to the table for closing?
Answer by kissamahbutt
Not a chance. You will always have to pay processing fees when you refinance, and because you are up-side-down in the loan, it will be hard to get approved. You will need to bring money.
What do you think? Answer below!
While not the best of interest rates, that is much better than anything from the 1970s through 1990s. It is doubtful you can refinance anything more than 95% LTV (loan to value). Talk to a broker for possible creative financing with a first and second trust deed by try to avoid getting caught in one of those strange exotic loans that caused this financial crisis.
Closing costs can be rolled into the mortgage. We just refinanced and for a 15 year, fixed rate 5 3/8%, with 6,000 in closing costs. There are options will minimal or no closing costs however.
I doubt you can refinance with no costs ANYTIME
Why would any bank do a mortgage or refi for free? that’s how they make a lot of their money up front to pay the mortgage broker commissions, etc
– if you owe more than the house is worth, it will be very difficult to refi at all
You will not be able to re-fi if your upside down with your mortgage. You would need to take the difference & closing costs to the table in order to close.
Your best bet is to call your current mortagage company. They are “on the hook” already and may work something out with you. No other company would have any reason to do anything to help you.
no you cant the stimulas is only for people in arms or intrest only if you have a fixed rate and never been late but are upside down all you can do is wait until the values go up stop being greedy and just thank god YOU can afford your payments.