Tuesday, January 11, 2011

Q&A: Refinance Options?

Question by Options: Refinance Options?
Wonder if anybody knew of any options I have here. Here is my
situation I have a first and second mortgage interest only. I would
like to refinance to a 30 year fixed. I bought the house 2.5 years
and since then it value has dropped. So much that I owe more then the house is worth (negative equity). What options to I have to refinance here? The first mortgage would be a Jumbo Loan as well. Am I just out of luck or is there something else I just consider?
Thanks for you time.


Best answer:

Answer by Ida Slapter
That probably depends on your credit score and income. But you might have trouble with owing more than it is worth - could you pay down the second until it is worth what you owe?

Another possibility would be filing bankruptcy so you could get rid of the second and do a re-affirmation on the first. But that would leave you stuck with the interest only first for a while.

I would check with some mortgage brokers - you never know!



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