Options for under water borrowers

[tiff]

Hi I'm trying to refi my home. In a 8% conventional loan. Great credit scores. The home is coming in 21,000 lower than what's needed to refi. I need to know my options. The loan isn't owed by fannie Mae or Freddie Mac. What are my options for refinancing without destroying my credit score. I can afford the payment, but I'm throwing away lots of money.

[Anonymous]

Hi - no solutions here, but looking for answers, too! :-)   I have a 9+% loan on a property that is now State appraised  20K lower than what is owed on in.  Comps in this area are about what we owe. Haven't tried a re-fi as debt ratio is out of wack, but getting a re-fi would help the debt ratio (be able to pay down the CCards.).

Ideas from anyone would be wonderful...

[MissMia75]

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@tiff wrote:
Hi I'm trying to refi my home. In a 8% conventional loan. Great credit scores. The home is coming in 21,000 lower than what's needed to refi. I need to know my options. The loan isn't owed by fannie Mae or Freddie Mac. What are my options for refinancing without destroying my credit score. I can afford the payment, but I'm throwing away lots of money.

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Who is the Investor of your mortgage?

[DallasLoanGuy]

look into HARP 2.0

for fannie mae owned properties.

[Anonymous]

any viable options if mortgage isn't backed by Freddie or Fannie?

[Lel]

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@tiff wrote:
Hi I'm trying to refi my home. In a 8% conventional loan. Great credit scores. The home is coming in 21,000 lower than what's needed to refi. I need to know my options. The loan isn't owed by fannie Mae or Freddie Mac. What are my options for refinancing without destroying my credit score. I can afford the payment, but I'm throwing away lots of money.

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What is the balance of your loan and the approximate current value of the property?  Is it feasible to do a cash-in refi, in which you pay the $21,000 to bring down your loan balance to an 80% LTV ratio?

If you have a fairly large loan balance (e.g. $500,000), then if you were able to refi to a 4.5% loan, for example, you'd probably be able to recover that $21,000 in a few years.  It would mean some short term pocketbook pain, but would pay off in the long run.