Carrie asked:
Our house is worth less than what is being mortgaged. We live in California where home values have really gone down. We have a first and second mortgage. The big one might be close to what our house is worth. Can we just refinance one mortgage? I didn’t know how it worked if you are upside down in your loan like we are. Our house is worth 191K and about 250K is our mortgage.
TYLER
Our house is worth less than what is being mortgaged. We live in California where home values have really gone down. We have a first and second mortgage. The big one might be close to what our house is worth. Can we just refinance one mortgage? I didn’t know how it worked if you are upside down in your loan like we are. Our house is worth 191K and about 250K is our mortgage.
TYLER
GERALD
maybe a “non-conforming” loan would do so… but my initial instincts are that no bank would touch it. It’s too much of a risk for them. The only way any lender would touch it would be if they charged you a huge interest rate to make it worth their while. It almost makes the idea of refinancing pointless to you in that case.
Im sure most companies would ask for a 10-20% deposit worth of equity down before lending.
Comment by potato_head30 — September 18, 2009 @ 1:14 am
EFREN
Yes, you can refinance just one mortgage. The federal government has two programs that is is offering for a limited time to help homeowners that are struggling with their mortgage. The first is a loan modification program. You may qualify for loan modification if you can document some sort of financial hardship.
The second program is a refinancing program, which allows you to refinance your first mortgage provided that you have not been more than 30 days late in paying the mortgage in the last 12 months. I’ve attached articles detailing the two programs for you. You should see if you can qualify for either program and then get applications in asap.
If neither of those programs work for you you need to shop around. You should probably evaluate a refi of your first mortgage and then a refi if you rolled the first and second mortgage together. It is hard to get loans these days so you must be persistent.
Comment by researched it — September 20, 2009 @ 5:35 am