Posted on: 16th Feb, 2009 06:40 am
bought my house for 415000 in 4/07. appraisal then was 420000. i currently owe 389000 on my mortgage and have a 6 3/8% interest rate.
for refinance, mortgage company said they would only lend 97% of home's value. tacking on the refinancing fees, i was told my appraisal had to come in at 404000 and that i was eligible for a 5% interest rate.
appraisal came in at 360000.
do i have any options available to me to get the refinance? all my mortgage lender said was that it was doubtful since the appraisal came in so low.
i appreciate any feedback.
for refinance, mortgage company said they would only lend 97% of home's value. tacking on the refinancing fees, i was told my appraisal had to come in at 404000 and that i was eligible for a 5% interest rate.
appraisal came in at 360000.
do i have any options available to me to get the refinance? all my mortgage lender said was that it was doubtful since the appraisal came in so low.
i appreciate any feedback.
At this point your only option is to keep your existing loan and make your payments. Your rate is NOT a bad one. If you are in the home long term, then it will eventually increase in value. You have no other option to reduce your payments. If you have PMI, then you may be able to pay down your loan to a level of 80% of your purchase price which would enable you to remove that PMI portion of your payment.
dmgiven, i'm afraid you're going to have to continue to live with your mortgage as is...the lender isn't about to do anything for you at this time, unless you're in a hazardous position.
other lenders are going to be in the same position. the key now is that you'd apparently like to keep the home, which hopefully suits you, and if you're able to continue to make payments on your mortgage, you will, over time, gain some equity in the home and get to the point where your mortgage balance and home value will be much closer.
in other words, if you're happy with the home, don't fret about the value - just continue to pay and eventually your equity position will improve.
other lenders are going to be in the same position. the key now is that you'd apparently like to keep the home, which hopefully suits you, and if you're able to continue to make payments on your mortgage, you will, over time, gain some equity in the home and get to the point where your mortgage balance and home value will be much closer.
in other words, if you're happy with the home, don't fret about the value - just continue to pay and eventually your equity position will improve.
