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Is there a refi option for undervalued homes?

Posted on: 17th Nov, 2010 12:20 pm
we built our home 6 years ago, paid around $300,000 and put 20% down on a conv. 30 year loan. now, we are in a position that we can afford and would like to refinance to a 15 yr. loan. however, because we live in an area that has seen tremendous decrease in property values because of the real estate fiasco, we no longer have 20% equity in our home. we have never missed a payment, have excellent credit and stable jobs. an acquaintance recently told me that there is a new program provided under the recently changed mortgage regulations for people in our situation. anyone know anything about that or where perhaps i should go to find out more information about options for us. thanks! diane
Hi todd86diane!

Welcome to forums!

Unless you have equity in your property, you won't be able to get a refinance. The lender will want you to have 20% equity in your property. Unless you have the equity, though you're financially stable, the lender will not be able to give you a refinance.

Feel free to ask if you've further queries.

Sussane
Posted on: 17th Nov, 2010 06:25 pm
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