Posted on: 06th Aug, 2011 08:40 am
i'll try to keep this simply stated. here's my situation.
i bought my home very soon before the market crashed, got a 100% loan, and now owe 30,000 more than the home is worth.
i'm going back to school and trying to save money. thus, i've moved back home with my parents and have been renting my home for the past year. my interest rate on my mortgage is 6.875, at least 2 full points higher than it would be if i could refinance (could probably get 4.5).
but therin lies the quesiton. in my situation, can i even refinance? are their any refinance options out there for someone who is underwater when it's technically an investment property (even though i'm losing money each month renting it, rent is 400 short of my mortgage payment)? if not, what is the bare minimum i would have to do to qualify for refinancing? simply get back to the 'even' mark? have 25% equity?
thanks in advance to anyone who has some insight into this. i'd love to hear any creative ideas, there are so many options out there for people nowadays, it's so hard to figure out if you qualify for any. in case it makes a difference, i bought my house in late 2007.
thanks again.
i bought my home very soon before the market crashed, got a 100% loan, and now owe 30,000 more than the home is worth.
i'm going back to school and trying to save money. thus, i've moved back home with my parents and have been renting my home for the past year. my interest rate on my mortgage is 6.875, at least 2 full points higher than it would be if i could refinance (could probably get 4.5).
but therin lies the quesiton. in my situation, can i even refinance? are their any refinance options out there for someone who is underwater when it's technically an investment property (even though i'm losing money each month renting it, rent is 400 short of my mortgage payment)? if not, what is the bare minimum i would have to do to qualify for refinancing? simply get back to the 'even' mark? have 25% equity?
thanks in advance to anyone who has some insight into this. i'd love to hear any creative ideas, there are so many options out there for people nowadays, it's so hard to figure out if you qualify for any. in case it makes a difference, i bought my house in late 2007.
thanks again.
Hi Mdr,
Well, you're in a tough situation. Normally, if your property does not have equity in it, then none of the lenders will be ready to refinance the mortgage. However, if you have a mortgage either owned or guaranteed by Fannie Mae or Freddie Mac and if you're not more than 30 days past due on your mortgage, then you can apply for Home Affordable Refinance Program (HARP) and check out if your lender can help you. To know more about HARP, check out the given page: http://www.mortgagefit.com/problems/homeaffordable-refinance.html .
Well, you're in a tough situation. Normally, if your property does not have equity in it, then none of the lenders will be ready to refinance the mortgage. However, if you have a mortgage either owned or guaranteed by Fannie Mae or Freddie Mac and if you're not more than 30 days past due on your mortgage, then you can apply for Home Affordable Refinance Program (HARP) and check out if your lender can help you. To know more about HARP, check out the given page: http://www.mortgagefit.com/problems/homeaffordable-refinance.html .
Hi, it is unfortunate that you purchased the home and its underwater, but you must know, that real estate is a cycle, always has, always will. You did not put any money down, therefore you have no real investment. Someone else is paying the majority of the note, and you are out $400 for an investment, that will pay it self off. If I were you, I would stay put, under water 30k is not much at all to recover, and since you have another paying the loan, its an investment, or a savings account if you can think of it that way. Dont think about the neighbors or what rate you could be paying, keep focused on what you have, and what you can do with it.
