Archive for the ‘house’ tag
Refinance Owe More Than Worth
Can I refinance my loan if I owe more than my home is worth?
Not easily. Typically you can only refinance for about 80% of the value of the house (maybe 100% – but never anymore). So you will have to pay the difference between what you owe and what the new loan is; out of you own pocket. The possible exception is if you refinancewith the bank that currently has your loan. Since the new loan will be for the same amount as the loan you have with them anyhow, maybe they will refinance it for you for the same amount. Still, there is really no reason for them to cut you much of a deal. IE if the old loan is at 8% and you want to refi to get it down to 6% why should they do this for you – you really can’t take your business somewhere else since nobody else will even make the loan.
Anyhow, you can call you current bank and ask them,but its probably going to be a no.
When You Owe More THAN YOUR PROPERTY IS WORTH!