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is it possible to refinance to take advantage of the current rates with little to no equity?

I currently have an fha loan for 243000 at 4.375%. My current balance is 238000 I have only been in the loan for a little over a year. My brother and my self are currently on the loan. He has found himself an other place and pretty much wants out of the loan. I would like to refinance the loan to see if I can get a lower payment taking advantage of the current low rates and at the same time do the loan by myself. I know that both my credit and income will qualify me to do it by myself but im not so sure that my home would even appraised at my current balance. What would be the smart thing to do here I know I can streamline the loan without having to get an appraisal but would still have keep my brother on the loan. Now is there a way to take him out of the loan and at the same time refinance at a lower rate in order to see monthly savings?? Thanks any help would be appreciated
  • November 14 2012 - Pomona
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Answers (3)

We do have a 5% Lender Paid Mortgage Insurance program that you can refinance in to. You would need to qualify on your own but you would get rid of the monthly mortgage insurance. That would be a huge savings.

Feel free to click on my profile link and contact me for more info!

ivan
  • November 27 2012
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You also may qualify for a HARP loan which is designed for people with little to no equity in their home.  Contact your Mortgage Company and talk to them.  You do not need to have equity in the house but will need to qualify on your own to refinance it if your brother wants out.
Good luck to you!
  • November 14 2012
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You can still do a streamline and remove him, it is called a Credit Qualifying Streamline and can be done without appraisal. You will have to qualify on your own income. Feel free to contact me through me profile and we can take a closer look at this option for you.
  • November 14 2012
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