Re-financing Home Mortgage

**asshanson** · 10-05-2010

I think you have to get two mortgages in that case (same situation for me). A lower rate for what your house is worth, and a second one for the remainder at a higher rate. Or you pay cash for the difference of what you owe if you have the money to spare.

This doesn't really save you money in the short term though, which would be the whole point for me to try and get a lower rate. I don't plan on keeping it a long time so having the second mortgage doesn't really make sense, plus I'm about $30k under so I really have no choice but to stick it out for awhile.

TalonFiero · 10-05-2010

What about the HARP program?

You may be eligible for HARP if you:

* Own a one- to four-unit home that is your primary residence;
* Have a mortgage owned or guaranteed by Fannie Mae or Freddie Mac
* Are current on your mortgage payments and have not been more than 30 days late making a payment within the past 12 months
* Have a first mortgage not exceeding 125 percent of the current market value of your home;
* Have income sufficient to support the new mortgage payments; and
* Can improve the long-term affordability or stability of your loan with the refinance.

This is what I am looking into as my mortgage is secured by Fannie Mae and I am at least upside down by 10-15% on my mortgage.

I'm locked in a 30 year fixed at 6.375% which was lowest rate back in 2005.

**Tachyon** · 10-05-2010

I had a good friend in Duluth who bought a home 2 years ago @ 6.75% successfully refinance using FHA streamline program. All he did was go down to a small locally based bank and locked in at 4.25% + Closing costs. Not too sure what his home is worth now compared to when he bought it, however.