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What is the best option for me? Refinance now or wait for better market values?

I have a single family home built on 2008 (2000 sqf, 3 beds, 2.5 bath, 7K sqf lot). With upgrades I paid 435K and with the all the improvements (landscaping, etc) my total cost was around 455K. Market in the area is down 11% (98065) and my mortgage balance (6.125% 30 year fixed) is around 370K.

I was looking for refinance with better rates or use one of the new government plans, but the companies I have consulted told me I don't fit into government plans and the current value of my house is below my mortgage balance.
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May 28 - Snoqualmie

Replies (6)

Profile picture for geordy
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It will be pretty much impossible to refi if you owe more than the appraised value of the home unless you had cash to pay down the balance with.  If you don't have some sort of hardship that has caused a reduction in income since the time you closed the loan, a modification is out of the question too.  Seems like you will have to wait but I would continue to research it.  Things are changing week by week.
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May 29
Profile picture for jayhawk88
Yep seems with the lower home values and noise pollution, we are a community are in bad shape.  I would not be surprised this gets out on the news and no one will want to live up there any longer.  Especially on the Ridge. 
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May 29
Profile picture for Nate
Danielwollmann,
Geordy is right in that it is hard if you owe more on your home than it is worth.  Are you saying you owe 370 on a home worth 410 (455-11%).  If that is the case I would recommend submitting a loan request on Zillow Mortgage Marketplace and seeing what type of quotes you can get from our thousands of lenders.  It is a free and anonymous shopping site.  However, national mortgage rates are up today so you may want to continue to check back and refresh your quotes over the next couple of days/weeks.  You can watch national mortgage rate averages here.
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May 29
Profile picture for Edmonds WA
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If your house was part of a new 2008 subdivision then the zip code 98065 doesn't matter as much as other more or less identical houses in your subdivision.  How much are they selling for?  Also what form of mortgage insurance/loan type do you currently have?
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June 10
Hi Stephen,

I don't know if it is from the subdivision. I know it is located at Deer Park, or the area developed in 2007. I'm not looking for selling, but to improve my loan rates.
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June 10
Profile picture for annyt
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Knowing the price homes are going for in the last 6 months in your subdivision is a good indication of the current market value of your home which is what the bank will be looking at very closely. It sounds like you've been keeping pretty good track of it. Definatley run your request through Zillow and see what you kind of rate quotes you get back.   
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June 10
 

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