Question by sjr07: I owe 170k on my mortgage and it is worth 155k. What do I need to do to refinance?
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Answer by ?
Your upside down on that house. You have no equity. All the refinance in the world will only make you more upside down.Your in the hole 15K borrowing more will mean even bigger debt. Is that what you want?
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Get over it – and keep paying your mortgage – the prices will come back. It may take ten years, but you gotta live somewhere – isn’t your nest nice? – would you trade down for an apartment or mobile home? Nobody is going to re fi you for less than what you owe, what the banks will offer is 1) a forbearance for a couple of months or 2) a longer term to pay off – they’ll rewrite but won’t change anything like the interest or the amount you owe. (Banks just love the new 50 year mortgage!)
You are only (tough word) under water by fifteen fathoms. This is not as horrid as others. We are down 150 fathoms, so smile.
You do not mention your interest rate, nor the refinance rate. Many lenders will not deal with an unsecured loan. The portion of the loan that exceeds fair market value is, frankly, unsecured.
Why not re-post your question in the Yahoo Answers section on REAL ESTATE? In fact, YA may even have a section on LOANS. I would suggest you attempt to secure an answer from someone in the field.
When you re-post, please mention your state and the interest rate for you current loan. Is your present loan fixed or variable? That, or provide that information with an update to this question.
Let us help you.
Fair enough?