Question by justjen: Any way to refinance 2 mortgages in to one if the balance of your loans exceeds the value of your home?
We have 2 loans- (30 years fixed at 7% and 15 year Balloon at 12%). We have lived in the house for almost 4 years and both have excellent credit. We were planning on refinancing by now but the value of our home has dropped below what we now owe. We are ineligible for any government assistance because we haven’t missed/been late on any payments. Anyone have any insight as to get in a better mortgage position?
Answer by Hoa N
Just refi your 1st mortgage if you could find a lender to do it.
try to pay the 2nd mortgage as fast as you can.
Other than that, It’s tough to do combined loan. Now , the rules are so tight that the lenders are not going back to NINJA loan no more.
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You would have to have enough cash to cover the drop in value
No there is not. In order to refi, you must be 80% LTV on the loans, not over 100%. Next time save for a down payment before buying a home. The 15 year Balloon at 12% is scary. Did you get that loan from the mob??? YIKES!!
Only if you can pay the difference between the allowable loan-to-value and what you owe.
Have you experienced a hardship? If so you might qualify for Making Homes Affordable, if it’s still available. Do a search on it. It wasn’t for people who were behind. I don’t deal with it, so I haven’t really paid much attention to it.