How can I refinance my mortgage when the existing loan in greater than 90% of the value?

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It doesn’t seem lower interest rates do the majority of people any good, as mortgages already greater than 90% of the appraised value can’t be refinanced (even if refinancing for the same amount!) How does this help people who’s home value has dropped with the market and are struggling to make payments on their high interest ARM? Would they rather these people foreclose or declare bankruptcy?

So what are my options at refinancing, given that most lenders, including my current have added stringent measures? Also I dont want to pay a huge closing cost.

  1. Reply
    February 11, 2011 at 2:21 am

    Your best bet is to call your current mortgage company and try with them. If they say no—then wait a week and call again. I would even do it a third time if needed.

    I have found that maybe I say things in an odd way, The second time I called I got a different person and maybe I was more polished in my request.

  2. Reply
    Real Estate Guy
    February 11, 2011 at 3:05 am

    GO FHA

  3. Reply
    February 11, 2011 at 3:56 am

    ok you need to do so then just do it and bite the bullet. The closing cost can be added into the loan. You are in no danger of not having PMI at this point so if you can truly save then do it
    I am a mortgage banker in TN & KY

  4. Reply
    Jay S
    February 11, 2011 at 4:08 am

    Go FHA with nominal closing costs you should be able to get 5.375% 5.5% with no origination fee.

  5. Reply
    February 11, 2011 at 4:38 am

    Mortgage loan is a term used for the loans secured by a property. Mortgage loans refer to a loan secured by residential property, often for the purpose of securing real estate. Mortgage loans are priced lower than other loan structures because the value of the property risk for the lender.

    A fixed rate mortgage loan has its own benefit. If the borrower is budget conscious, he will remain at peace because the monthly mortgage amount will not change.Fixed rate mortgage loan is a loan where the interest rate remains the same through the term of the loan. Fixed rate mortgage loans are the most traditional form of loan.

  6. Reply
    Doctor Deth
    February 11, 2011 at 4:40 am

    it depends on what your current rate of interest is and how long you expect to stay in the house to see if it is even worthwhile trying to refi –
    Say you plan on moving in 3 yrs and and you will save $ 50 a month by refinancing (36 x 50 = $ 1800 savings), BUT the cost to refinance will be $ 2000 – you are only saving $ 1800, so it makes no sense to refinance in this example

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