Asked by drahomir  |  Submitted August 06, 2015

I owe $174k & my house is only worth $130k. Interest rate is 6.50% and I'd like to refinance with a lower interest rate. Any way to do this?

I've been off work for 3 months. I work construction, so work has been slow, just working a day or 2 here and there.

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  Answers  |  3

August 06, 2015

Sounds like you're in a tough spot, sorry to hear that. Do you happen to know if your current loan is an FHA or VA loan? If so, you may be able to do a streamline refinance as equity, income and debt ratios don't matter (for most lenders, anyway) on those. In both cases, you'll need to have minimal/no 30 day late payments on the mortgage in the past year. If you don't have an FHA/VA loan, you really have no options, given your current income situation. You could always pursue a modification with your current loan servicer, but those are quite time consuming and can also involve proving you have adequate income for the payment, which it sounds like you might not have. If you have any questions on streamline loans, feel free to contact me as I write loans nationally. Thanks, Ted

$commenter.renderDisplayableName() | 11.18.17 @ 01:13

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August 11, 2015

So sorry you are in a tough spot. Be sure to contact your current lender and explain your situation. You do not want to get into a situation where you are two or three months behind and they start foreclosure proceedings. If you are up front, open and honest with them, they will help you in any way they can. Remember, they are in the business of lending money, not re-selling real estate. They would much rather work out a deal with you.

$commenter.renderDisplayableName() | 11.18.17 @ 01:13

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August 11, 2015

1) contact present lender / servicer to see if they have options ?
2) when was the loan started ? there are some special refinance programs for " underwater" consumers but the loan needed to originate before mid 2009 ( I believe ...)

$commenter.renderDisplayableName() | 11.18.17 @ 01:13

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