Question : What are my chances to refinance if my home to value has droped amost to even money?
Wife and I purchased the home a year ago for 475,000 and currently owe 423,000. I hate to say but because of a devorce we have to do something about the house. Is there any way to refinance the house to get a lower payment so the wife can handle the payments on her own? House prices have droped so much in our area that I'm not even sure if we owe more than what the house would now appraise for. Thanks for your help.
- asked by Keef
All Answers:
Answer #1
low
- answered by Ozeki
Answer #2
I was in a similar situation...Check around. Somecompanies will finance you for up to 90% of thevalue as long as your debt to income ratio isbelow 50% or so. Most companies however try tokeep this to 80% of the homes current value. Thefirst thing you need to do is drop $300 asap andget it appraised. Some appraisers are shadier thanothers and will skew the homes value in thedirection that you need him too.If you go by the90% rule you'd need the house to appraise for$470,000 to be able to refinance. I can't see howthis would lower your payments much if at all.At80% you'd need to appraise for $528,000. I thinkwe both agree that's not going to happen.I woundup deciding to take a loss and sell a few thousandbelow value. It was better for me to get out fromunder the place and have a $10,000 loan on theside than be stuck losing another 30% in valueover the next year. Figure a loss of $120,000verses a loan of $10,000... Makes sense...Mypersonal advice is to get it appraised and list it$5,000 to $10,000 under that. Cross your fingersand hope that it goes. If you stick with it, itmay be 10 years before prices return to theircurrent levels (assuming a 5% annual increaseafter the expected correction).Best of Luck.
- answered by Jake B
Answer #3
i am a mortgage broker, you may not be be able toget a better rate on the home but some lendingsituations are doing as much as 97% of appraisedvalue. contact me if oyu want to see what theoptions are. money_for_sell@yahoo.com
- answered by explosurenet
Answer #4
You need to get an appraisal. In order to getrefinanced the lender will order one anyway. Thiswill let you know if you canrefinance at theprice you want.
- answered by psi2006
Answer #5
It all depends on ratios, appraisals, and income. A great loan officer may be able to steer youthrough this complex maze although the fact thatit is a jumbo loan complicates it further. Isuggest Hometown Banc Corp. My mom used them.They may be your best opportunity for someone tosay yes. If your credit does not measure up, theydon’t simply “forget to call you back.” They help you get into a credit repair program youcan afford regardless of income. Check out thefree evaluation form atwww.totaldebtsolutionsllc.com and a Hometownloan officer will contact you .
- answered by Nicki W
| 
