What is an underwater mortgage?
It simply means that as a homeowner, you owe more on your mortgage than your house is worth. For example, your home is worth $250,000, but you owe $300,000 on the mortgage; that means you are underwater, or upside-down on your mortgage. This is also referred to as negative equity.
Why is refinancing beneficial?
For underwater borrowers, refinancing simply means getting a new mortgage to replace your old one with the goal of reducing monthly payments, lowering your interest rate, or changing your loan program from an adjustable rate mortgage to a fixed-rate mortgage. In most cases you do not need to have equity in your home to refinance if you qualify for one of the specialized refinancing programs that have become available over the past several years. Learn more
Can I qualify for refinancing?
For many borrowers there are now options to refinance your current or investment home no matter how underwater you are. Find out if you are eligible by following the three steps below.