Posted on: 01st Apr, 2009 03:24 pm
can i refinance if my home value went down and there is no equity...i bought home for 440,000 and put a 5% down. i owe 417,000 still and want to refinance to lower our rate. we currently are paying 7.25%. is this possible.
april 4, there should be a fannie/freddie financing that allows you to finance
105% of the value of your home. It really depends on how much the value of your home dropped since you purchased it.. that may have taken away your equity and put you in a negative equity situation. you should see if an appraiser is able to give you a ballpark estimate or you may have to do an appraisal. even if you were to get the value that you needed... your rate may not be significantly better due to risk factors that are translated into points that are added on to the loan, i.e. fico score and high LTV.
105% of the value of your home. It really depends on how much the value of your home dropped since you purchased it.. that may have taken away your equity and put you in a negative equity situation. you should see if an appraiser is able to give you a ballpark estimate or you may have to do an appraisal. even if you were to get the value that you needed... your rate may not be significantly better due to risk factors that are translated into points that are added on to the loan, i.e. fico score and high LTV.
Hi marian_gallagher,
In most of cases, if you are upside down on your mortgage, then the lender would not refinance the mortgage for you. However, dcerda is right that fannie/freddie will finance 105% of the value of your home. So, I would suggest you to contact your lender and check out if you can take advantage of that plan.
Thanks
In most of cases, if you are upside down on your mortgage, then the lender would not refinance the mortgage for you. However, dcerda is right that fannie/freddie will finance 105% of the value of your home. So, I would suggest you to contact your lender and check out if you can take advantage of that plan.
Thanks