Posted on: 11th Feb, 2010 01:58 pm
I have an 80/20 loan on my home. The 80 is interest only and i owe 155,000.- the interest rate is variable and it will mature in aug. 2010. My 2nd loan is p&i but is balloon loan and the interest rate is 7.75. I owe 31,000 on it. I have had huge road blocks trying to consolidate both loans at a locked rate. I owe 186,000, but a recent appraisal said value is only 170,000. I have excellent credit and no debt beyond my mortgage, but can't get anywhere on re-fi ! Can you please help ?
hi kwcorwin!
welcome to forums!
as you do not have equity in your property, you won't be able to qualify for a refinance. lenders will refinance your mortgage only if there is equity in your property. if you are unable to pay off your mortgage dues, you can request for a loan modification from your lender.
feel free to ask if you've further queries.
sussane
welcome to forums!
as you do not have equity in your property, you won't be able to qualify for a refinance. lenders will refinance your mortgage only if there is equity in your property. if you are unable to pay off your mortgage dues, you can request for a loan modification from your lender.
feel free to ask if you've further queries.
sussane
Yes, a Loan mod is probably a better chance. To "refinance" the lender would have to be willing to offer you the loan you're looking for under your current situation. As yor loans total more than the value of the property they will not agree, unless you can supply some other security perhaps.
Put it this way, if you went to another lender and said, hey, I'd like to borrow [total of all your borrowings] against this house, would they accept it? If not then you probably can't refinance.
Put it this way, if you went to another lender and said, hey, I'd like to borrow [total of all your borrowings] against this house, would they accept it? If not then you probably can't refinance.
rise...it's not a matter of "would they accept it?" and "if not" but more that it's an absolute. no lender is going to be able to do a refinance of $186000 of debt with a value of $170000. the new fannie mae/freddie mac deal supposedly goes to 125%, but does anyone really think that lenders are going to go that high? not if they're paying attention to the marketplace, they won't. you might get as high as 105% of value, but that's not even a given.
kw, you MAY be able to refinance if you qualify for the DU Refi PLus program.
>>no lender is going to be able to do a refinance of $186000 of debt with a value of $170000
Sometimes they will - last year I had 4 lenders accept short-payoffs, although most wouldn't. It was worth a phone call, and all they can do is say "no". Like my Dad used to say "all they can do is say "no", they can't kill you for asking".
In each of the situations where the lender agreed to the short-payoff, the homeowner was in a hardship situation - all of them were in foreclosure and at risk of losing their homes.
Sometimes they will - last year I had 4 lenders accept short-payoffs, although most wouldn't. It was worth a phone call, and all they can do is say "no". Like my Dad used to say "all they can do is say "no", they can't kill you for asking".
In each of the situations where the lender agreed to the short-payoff, the homeowner was in a hardship situation - all of them were in foreclosure and at risk of losing their homes.
so true, raymond...hey, didn't all of our dads have wisdom that we learned about later on instead of listening to them at the time? maybe it's just me, though.
if we'd listened to everything they said, we'd be so much better off now.
if we'd listened to everything they said, we'd be so much better off now.