Underwater Mortgage Refinancing Options

Do you have a mortgage payment that is too high? Are you in foreclosure on your home? Perhaps you are looking to change from an adjustable-rate mortgage to a fixed-rate mortgage. There are many options to refinance your underwater mortgage, no matter what reason. Yes, that's right. Some programs can help almost all types of borrowers, even if your mortgage is larger than the value of your home. These are some of the most common questions regarding refinancing an underwater loan.

What Is An Underwater Mortgage?

A homeowner with an underwater mortgage owes more money on a mortgage than the house is worth. For example, if your house is worth $250,000, but your mortgage is $300,000, that would mean you are underwater or upside-down with your mortgage. Negative equity is another name.

What Makes Refinancing Beneficial?

Refinance is for underwater borrowers. It's simply getting a new mortgage to replace the old one. The goal is to reduce monthly payments, lower your interest rate or change your loan program from an adjustable to a fixed rate. If you are eligible for one of these specialized refinance programs, you don't need equity in your home.

Am I Eligible For Refinancing?

Many borrowers are pleased to know that options are available to refinance their investment or current home, regardless of how underwater they are. Follow these steps to find out if your eligibility.

What Lenders Should I Contact About Refinancing My Underwater Mortgage?

Homeowners with underwater assets should contact at least one additional lender besides their current bank or servicer. It is worth shopping around as there may be significant differences in the rates and fees offered by current servicers and other lenders.

What Happens If A Lender Refuses To Work With Me? Can I Still Refinance?

One lender telling you "no" doesn't mean you can't refinance. Keep shopping around for other lenders. Every lender has its own guidelines, which may be stricter than the government.