Posted on: 11th Jul, 2010 05:33 am
Hi everyone, hoping for some advice as everyone I have spoken to at local banks has been of no help.
Bought a house in March 2007 with my wife. We both have excellent credit. We bought the house with $0 down. Our interest rate was slightly above 6.5%, plus PMI, which is built into the rate, bringing the rate to 7.125%.
Our assumption was that as we paid down the loan, and the house at least held its value, we'd be able to refi. As you can imagine, this hasn't been the case.
Now we owe about $355k on the home, and I am quite confident that our house would appraise for significantly less than that.
GMAC, who services the loan, says they can't do anything as the PMI keeps our hands tied.
Any ideas? Thanks!
Bought a house in March 2007 with my wife. We both have excellent credit. We bought the house with $0 down. Our interest rate was slightly above 6.5%, plus PMI, which is built into the rate, bringing the rate to 7.125%.
Our assumption was that as we paid down the loan, and the house at least held its value, we'd be able to refi. As you can imagine, this hasn't been the case.
Now we owe about $355k on the home, and I am quite confident that our house would appraise for significantly less than that.
GMAC, who services the loan, says they can't do anything as the PMI keeps our hands tied.
Any ideas? Thanks!
If you owe more than what the house is worth, you're probably not going to be able to re-finance. Normally, you'll have to continue to pay the PMI until the loan to value ratio is at 80% or less.