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how can I refinance at a lower interst rate when I owe more on my Mortgage then the home is worth?

  • August 10 2011 - Glenwood Meadows
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Answers (5)

You should start by visiting www.fanniemae.com and www.freddiemac.com. Use the loan look up tool on those sites to see if your mortgage has been purchased by either of those agencies. If so, you may qualify to refinance your first mortgage to a lower rate. Call your lender for more details.
  • August 15 2011
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It is definitely a possibility. The biggest question is is how much do you owe and what is your home worth?
  • August 11 2011
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Profile picture for Roseville Loan Guy


There are three products that would allow someone to do this. An FHA Streamline Refinance, a Fannie Mae 'Refi Plus", and the Freddie Mac 'Open Access Refinance' (the second and third of those are part of the "HARP" program sunnyview mentioned).

Eligibility depends on when your current mortgage was originated and who currently backs your mortgage. All other qualifying guidelines still apply but the Fannie/Freddie products actually have some pretty liberal income and credit guidelines and they are easier to qualify for than a standard refinance.

We'd have to know more about your current loan to really get into any details. Let one of us know if you'd like any more help...

Sincerely,
Greg

  • August 10 2011
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Profile picture for sunnyview
It is not correct to say that there is no program to refinance mortgages like this. HARP may be an option. As long as you qualify, you can refi up to 125% of your value if your credit is good and your payment will drop after the refi. There is information here. Go through the checklist and  you can also use the loan finder to see if your loan in backed by Freddie or Fannie. HARP has no negative effect on your credit and you do not need a hardship to qualify.

You can also call your lender and see what programs they have available. If you don't ask, you won't know. Have you called your lender to see if they have any in house programs that might help you?
  • August 10 2011
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Unfortunately, you can't. You can try contacting your mortgage company and see if they will modify your loan rate/terms. If you are having trouble affording your mortgage and have experienced a financial hardship, you could try for a short sale.
  • August 10 2011
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