by The Ardvaark
Question by : Is there any way to refinance my mortgage if my house is upside down? I mean seriously under water.?
My interest rate is about 6.5% and we owe $ 300,000 on a house that is worth $ 225K. Is there a way to refinance my mortgage without a loan modification?
Answer by Ariaread
No. The only way is to bring 75k in cash to the closing.
Know better? Leave your own answer in the comments!
Yes. With that LTV you may be able to qualify for the HARP program 2.0. With this program, under water mortgages are able to refinance, but only if you meet all the qualifications.
The LTV guidelines are supposed to be “limitless”, but that is only the guidelines. Lenders have the choice to approve or deny HARP refi’s. I have heard of lenders going up to 150% LTV, which you definitely fit under.
There are some more qualifications you must meet, however. The most important are:
– Your loan must be backed by Freddie Mac or Fannie Mae – no exceptions there.
– You cannot have more than one late payment in a year and the last 6 months have to be current. If you have a late payment 4 months ago, you have to wait a couple months to be eligible.
-You have to have taken our your mortgage loan on or before June 1, 2009.
If you meet those requirements, I would suggest contacting your loan officer and having them determine if you qualify.
In my experience, this program will only help homeowners with mortgage balances on the higher side and their current interest rate is at least 6% or higher. If you have a low mortgage balance, your really not going to see that great of a monthly savings to justify the closing costs. You would probably see a good amount of savings with a low 4% interest rate (which is what you can expect with the HARP 2.0 program).
Hope that helps!
Maybe through the HARP program. If you don’t qualify for that, then no.