Refinance Without Equity?

 Given America’s recently down-turned economy, many people find themselves wanting to refinance home mortgage loans without equity. Many people stuck in unaffordable adjustable interest-rate mortgage loans are unable to refinance. Owing more on the balance of your home mortgage loan makes refinancing very difficult. Though some opportunities to refinance still exist:

 

1. First step: contact a reputable mortgage lender and question them about what refinance, modification opportunities are available to you.  With the mortgage lenders help accomplishing a refinance home mortgage loan is much easier than going solo. Question them about credit rating requirements, home value, equity and home modifications available as well as refinance home mortgage loan interest rates and closing costs to refinance.

 

2. Lump Sum: Have a lump sum of cash to pay down on your home mortgage loan? In-laws/parents that can help? Paying down large amounts of ones home mortgage loan might free up equity and qualify the home for refinancing (refinance) options. Many lenders will not refinance home mortgage loans fore over 80% of the home’s value. (Called loan-to-value ratio or LTV) This means you would pay an additional 20% of your home’s value upfront in order to refinance.

 

3. Can’t Refinance? Modify!: If/When you discover refinance options is not an option for you, please consider home mortgage loan modifications instead of foreclosure. Modifications to home mortgage loans are like refinance options, in that like refinance options they get you out of a financial bind and don’t hurt your credit like a foreclosure. Modifications have been big since the recession started a few years back and many people still qualify after exploring other refinance options to home mortgage loans.

Remember, “If there is a will, there is a refinance or home modification option.”