You cannot refinance unless you pay off the difference. In fact, you may need to payoff more than the difference. For example, lets say the maximum loan to value scenario you can find is 95%.....
The bank will lend you 95% of the value. You would have to come up with approx $20k plus closing costs.
The bank will lend you 95% of the value. You would have to come up with approx $20k plus closing costs.
Hi poolwater,
As the property has no equity, you will not be able to get a refinance. It is better to go for a refinance if you have at least 10% equity in the property. To know more about refinance, check out the following link:
http://www.mortgagefit.com/refinance.html
Thanks
As the property has no equity, you will not be able to get a refinance. It is better to go for a refinance if you have at least 10% equity in the property. To know more about refinance, check out the following link:
http://www.mortgagefit.com/refinance.html
Thanks
poolwater, even though rates have dipped in recent times, the 6.375% you are paying isn't so bad. you'd likely only get a new rate in the range of 5 to 5.5%, not a significant drop, in my opinion. as noted above by the other two responses, your home's value is insufficient to allow any lender to provide a refinance at this time.
sit tight - you really lack any other options now.
sit tight - you really lack any other options now.
