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Company Loan Type APR Est. Pmt.

Can I get a refi? If its underwater to the tune of 75K

Posted on: 14th Jan, 2011 11:20 pm
Originally purchased for 640K, principle now 430K, zillo lists for around 355. Its rented but am thinking about getting rid of it or a refi to a 15 year fixed.
hi gormanfp,

you won't be able to refinance the mortgage as the property does not have equity in it. the lenders will not be ready to refinance the loan without any equity in the property. if you want to get rid of the property, then you can list it in the market in order to get buyers for your property. however, after the property is sold off, you'll have to pay off the dues in full to the mortgage lender.

thanks
Posted on: 14th Jan, 2011 11:30 pm
Also, your options are limited since it is an investment property. None of the Home Affordable refinance (HARP) or modification (HAMP) options will work for you unless it is your primary residence.

Non owner occupied property has higher closing costs, typically a 1.75% extra fee when you have at least 25% equity, and a 3% extra fee if you have at least 20%. Pretty much no investor will touch a n/o/o above 80% loan-to-value. I don't think there is any mortgage insurance available anymore for above 80% n/o/o either.

Good luck.

--steve
Titan Mortgage Alaska
Posted on: 16th Jan, 2011 09:39 pm
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