Profile picture for ssmaxx

1 house we have a lot of equity, 1 house we are upside down with 6.75% rate. Anything we can do?

One multifamily we own values about 200k and we owe 84k with a fixed rate of 5%. The multifamily we live in values at $219k we owe $274k with fixed rate of 6.75%. Any advise on something creative we can do to get a better interest rate?

  • July 31 2010 - Fall River
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Answers (5)

Best Answer

Hi Sue,

You need to talk to a lender but I think you are not going to get a refinance on your primary home.  Depending on how many units your primary residence is, you will need to pay down your $274,000 loan by at least $100,000; probably more.  If you were able to do a cash out refinance on the investment property to a 75 loan to value that would give you $66,000 in cash minus any closing costs.  If you have $50,000 in other cash to pay down your primary, then you could refinance.  Good Luck
  • July 31 2010
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Profile picture for CarenNealon

As Eric and Jennifer indicated, speak with your lender, you may even try going to their website to see what is offered. There are new programs enabling the banks to refinance up to 125% of existing mortgage balance. Based on the numbers you shared you are very close to that number. There will be costs involved if you are able to refinance but if you are able to get your rate to the current 4.5% area you could be looking at a monthly savings of about $350 per month.  Hopefully you will have success!

  • August 01 2010
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Ahem...interesting...ahem...answers...

Sue, is it?  Here are your options as far as a potential loan mod go:
1. Since the home which is underwater is also your primary residence, you may qualify for a loan mod.  In order to do a loan modification of any kind, you must show a hardship.  In your case, paying more interest than you want to or being upside-down won't do it--however, if you can legitimately show hardship in a reduction of rental income and possibily some other hardship (like--do you have medical insurance?  Have there been any excessive bills, etc.), you could qualify.  Check http://www.makinghomeaffordable.gov/

2. If you do not qualify, your only other option would involve doing a refi on the other property, and applying that to your residence, which could make sense if you can get a better rate--otherwise, paying down the principle is your best bet.
  • July 31 2010
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Profile picture for ssmaxx
Thanks for the helpful responses from Deborah and Eric & Jennifer.

HUDG - lol. Let's make a bet. You are a sad person with few true friends (most likely overweight and unattractive also). Is this relevant? Yes because rude people such as you are in reality losers with low self esteem and nothing better to do but be critical and judgemental. You may be small in some areas (if you get my drift)  and  are angry and offensive to compensate.

Hope you get some help with your problem(s).
Sincerely,
  • July 31 2010
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Refinance both homes at the same time and use the cash from one home to pay on the second home....
  • July 31 2010
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