How to refinance when your loan is higher than your home’s value?

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In this day of recession and economic downturn with no upside, all I hear is that people should refinance now. An example: If a home in 2006 is worth $ 365,000 and has an interest only loan of $ 365,000, in 2009, it is now worth $ 290,000 (-$ 75k less), should he/she refinance? Now unless they come up with the 75k difference, no bank is going to offer a mortgage with over 100% LTV. Any thoughts on this???!??!

5 Comments
  1. Reply
    Wyld Bill
    February 12, 2011 at 4:03 pm

    i am not a mortgage expert. that is not what i do for my profession. however i do know that the fed was willing to help people upside down in their loan. talk to a mortgage professional. there were some programs for a while. they may be gone by now. if that is the case you are SOL to put it bluntly. however what is your rate. please tell me you are not in one of those horrible ARMs that got us into the situation we are in now. if you have a descent fixed rate just ride it out. things will turn around……………maybe.

  2. Reply
    Caroline
    February 12, 2011 at 4:10 pm

    Who says they should refinance? Betcha it is the people who want to sell another mortgage.

    In this situation, refinancing is not a viable option. The only possible winner in this scenario is the guy (m/f) who cashes the commission cheque.

  3. Reply
    Naima
    February 12, 2011 at 4:49 pm

    http://loanrefinanceadvice.com/ has excellent information on how to apply for a refinance mortgage program, refinance rules and laws, and other helpful advice for anyone looking to refinance.

  4. Reply
    Loan One Mortgage
    February 12, 2011 at 5:38 pm

    You may wish to inquire to a loan modification though your current lender. You current lender has a lot to lose (more the 75k) if you walk away from the property and may be inclined to work with you.

  5. Reply
    Jen
    February 12, 2011 at 6:26 pm

    hi my name John Parker i live in los angeles in united state of America i am a business man in LA an want to expand my business i was looking for a legit lender who can help me to expand my business in LA so i apply for a loan which i was scam of my money then i was worried of how i can get a loan from a trust lender so a friend of mine that stay in new york told me about Mr harrygatefinancils@gmail .com that these company help him out when is business collapse he apply for a loan of $ 90000 in under 34hour he receive the loan from harrygatefinancials@gmail.com so i was amaze then i apply to my greatest surprise i receive a loan of a $ 100000 from harrygatefinancials@gmail.com i you surprise about it is thought i also refer my friend in Amarillo here in united state he receive a $ 45000 he is a nise man that understand life that can help somebody u can apply now thanks John Parker

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