Principal Reduction before refinanceWe are trying to refinance our upside down loan, the loan amount is 654k, our house value now is 520k, should I pay the difference of amount to my current lender and then shop to refinance, or should I shop for refinancing and apply this amount at closing? What is best way to do, please advice.April 15 2013 - Rancho Mirage00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.