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Question

Posted on: 11th Jun, 2010 09:45 pm
if i bought my home for $140,000 and it now apraises at $110,000, would it be a bad idea to use a streamline refinance?
Welcome Zacariah,

As far as I know, in order to refinance your home loan, you should have equity in your property. As you don't have equity, I doubt whether or not you would be able to go for a streamline refinance.
Posted on: 13th Jun, 2010 11:25 pm
That might be your only option.
Posted on: 14th Jun, 2010 08:10 am
so why would my lender be offering me a streamline refi if I don't have any equity?
Posted on: 14th Jun, 2010 11:22 am
Streamline would be your only option being that you don't have equity.
Posted on: 14th Jun, 2010 11:30 am
How much can I expect to pay if I do streamline refinance?
Posted on: 14th Jun, 2010 01:47 pm
Hi Zacariah,

You should note there are some lenders who will offer you no-cost streamline refinances. Such refinances are available at a slightly higher interest rate. But the advantage is that the lender will pay most of the closing costs on your behalf. If you wish you can even roll-over the closing costs into your loan balance. This will also help you reduce your out-of-pocket expenses.

Thanks,

Jerry
Posted on: 15th Jun, 2010 03:44 am
Is your present mortgage an FHA mortgage??? That is the only mortgage that allows streamline refinances.

If that is the case, you can do a streamline refinance without an appraisal but you woild have to mpay out of pocket for the expenses and prepaids unless the rate can be raised to cover them and then ,omthly principal and interrest must be reduced by at least $155 a month and the new Up Front Mortgage Insurance Premium is 2.25% (the one you have now was 1.75%)
Posted on: 15th Jun, 2010 08:23 am
You might consider trying a loan modification first. By adjusting the terms of the existing loan you would save all the closing costs.

Also consider a Forensic Loan Audit. If the closing documents on your existing loan are defective - incomplete, incorrectly filled out - you may be able to re-negotiate the existing terms.

Best of luck.

Steve

[Phone number deleted as per forum rules. Thanks.]
Posted on: 17th Jun, 2010 06:22 am
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