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Advice on refinance for more than 100 percent LTV - The Bills.com Blog
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Advice on refinance for more than 100 percent LTV
Wednesday, Oct 31, 2007
Question: I want to refinance my home when the ARM expires in March 2008. Our loan is 299,000 and the market value is around 275,000. Will I still be able to do refinance? If not, what are my choices.
Answer: Since your mortgage balance is more than the value of your home, you may have trouble obtaining a refinance loan, as most lenders are not willing to extend loans that exceed 100% of the value of the property.However, if you are facing a significant increase in your interest rates, you should certainly contact lenders to find out what refinance options are available to you based on your current financial situation.
The only way to determine whether or not you will qualify for a refinance loan is to apply for a loan with several different lenders and/or brokers.
Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and
find a loan that meets your needs.
Not only will these mortgage professionals be able to tell you whether or not your currently qualify, but if you do not qualify, they can tell you what aspects of your financial situation are causing you problems, and make suggestions about how to improve your chances to qualify for a loan.
If you would like to read more about mortgage refinance loans, I encourage you to visit the Bills.com Home Refinance Resources page.
If you enter your contact information in the Bills.com Savings
Not only will these mortgage professionals be able to tell you whether or not your currently qualify, but if you do not qualify, they can tell you what aspects of your financial situation are causing you problems, and make suggestions about how to improve your chances to qualify for a loan.
If you would like to read more about mortgage refinance loans, I encourage you to visit the Bills.com Home Refinance Resources page.
If you enter your contact information in the Bills.com Savings
Center at the top of the page, we can have several pre-screened mortgage brokers contact you to discuss the loan options available to you. You should also visit the Bills.com Credit Solutions page to learn more about credit, credit reporting, and ways to improve your credit score which should help you qualify for better loan terms.
I wish you the best of luck in finding a lender willing to work with you. I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
I wish you the best of luck in finding a lender willing to work with you. I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by Tess Adams on Wednesday 7th January 2009 11:16
I would like to know if refinancing is even an option in my case. Following is my situation. -I bought this house in June 2007 and paid $656,000. -I got two loans from Wells Fargo for 100% financing. -First loan with the amount of $524,000/ interest rate of 6.5% -Second loan is an Equity credit line with the amount of $136,000/ interest rate of 8.5%. -Currently the house is worth approximately (from Zillow) $505,000. Please let me know if it's worth it to refinance in this case. If so, how much money I'll have to pay out of pocket. What would be an approximate closing cost? Look forward to hearing from you. Thank you Tess (Thanaporn) Adams
2. Posted by Bill on Wednesday 7th January 2009 11:52
Seems like you are upside down on your loan. Refinancing is not going to be an option for you in this current market, quite simply because your LTV is going to be in excess of 120%. Even if a lender agreed to lend you the money, you would be paying more by way of interest than you are now, so it would not make sense, financially.
3. Posted by marian yildiz on Friday 9th January 2009 14:23
I have a first with BOFA $417,000 @6.75 interest only, 2nd at $100,000 @7.75 P&I. Appraisal is now at $517,00 since the prices dropped. We want to get a new loan at a fixed lower rate. Is this possible and if so how much would it cost? Thank you. P.S. excellent credit score
4. Posted by Bill on Friday 9th January 2009 15:15
100% LTV will be real difficult in this market. Suggest you wait till you accumulate some more equity.
5. Posted by robert on Saturday 28th March 2009 09:13
I'm in CA wanting to refinance with $623k loan at 84% LTV and going up every month. I'm told that by April 2009 the LTV requirement (without PMI) for refinance is likely to increase from 80% now to 90-95% and possibly higher. Also, that super conforming loan amounts will increase from $625k (current) to over $700k. Is this true/possible?
6. Posted by Bill on Tuesday 31st March 2009 16:34
I am not sure about the LTV requirements, but the loan limit will increase up to $729K in some parts of CA. See here: http://www.fanniemae.com/aboutfm/loanlimits.jhtml. The Obama Mortgage Relief Plan includes “Making Home Affordable” which is a program to allow lenders to let homeowners with good credit refinance their homes with LTV’s up to 105%. Most lenders should be offering this by April 1st.
7. Posted by DF on Wednesday 6th May 2009 09:21
Purchased home in 2005 for $615K w/ a 5yr ARM @ 5.75% interest only, w/ 20% down. Also have an ELOC maxed out at $60K. We have great credit (750+)but Housing market has increased LTV above 80%, and we're looking to refinance into a 30yr fixed. MHA only applies to FannieMae/FreddieMac...our loan is not...what are our options?
8. Posted by Corey on Wednesday 6th May 2009 14:37
Being that your LTV is above 80% it will be difficult for you to get a good rate in the current housing market. If you can come up with additional downpayment, it could be possible.