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Company Loan Type APR Est. Pmt.

Refi or Modification?

Posted on: 19th Jul, 2010 07:41 am
i am current on my mortgage, but am paying 7.89% interest. i'd like to refinance, but our home is underwater as a result of the downturn in the housing market and the current problems with the economy. i have asked my lender about modifying to a lower interest rate without reducing the balance of our mortage, but they haven't really been open to the idea. i'd like to refinance at a lower rate as obviously i can afford a lower mortgage payment (since i'm current on my now almost $2,000 a month mortgage), but no bank will refinance our mortgage because our home is underwater. do we have any options? i really don't want to miss a payment just to qualify for a modification, but we are reaching a stressing point.
Hi cme!

Welcome to forums!

As you don't have equity in your property, you won't be able to qualify for a refinance. Lenders will refinance your home loan if you've equity in your property. If you want to save your home, then you need to apply for a loan modification. Depending upon your financial situation, you may not have to be delinquent on your mortgage payments to qualify for a modification.

Sussane
Posted on: 20th Jul, 2010 01:03 am
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