Posted on: 28th May, 2009 06:59 pm
here is my situation: bought a 2-unit side by side duplex a few years ago. original loan amount was for 150k. original appraisal was for 192k. would like to refinance it but lack needed equity to do so. currently owe about 139k. the current appraisal would come in at the 140-150 range. it is not owner occupied and the loan is not owned by fannie or freddie. i would be able to drop 2 full % if able to refi. any ideas? thanks.
You should first appraise the property and check out if the property has equity or not. If the appraised value of the property is more than what you owe, then you would be able to refinance it. However, if there's no equity, then getting a refinance will become difficult for you.
First, have you been in contact with an appraiser in the area to verify the comparables to the property and find out the true value? What are your numbers based on? I hope this helps...
Yes, these numbers are from multiple comps and appraisals based on sq footage, bedrooms, etc. I've talked with 3 different mortgage brokers/loan officers and they said if I don't have 25% equity there is nothing I can do. So I would basically 25-30K to pay down the principal to do anything. Just was hoping there was some option they were unaware of.
You'll have to pay the downpayment in order to get a refinance. These days lenders won't refinance if you don't have equity in the property.