Asked by: Veniamin Yagofarovreal estate real estate buying and selling
Can I refinance if my house is worth less than I owe?
Last Updated: 1st March, 2020
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Similarly, it is asked, can you refinance if you owe more than your house is worth?
Refinancing When You Owe More Than Your Home Is Worth. Borrowers can refinance up to 125% of the home's value. To qualify for HARP, Freddie Mac or Fannie Mae must own your loan, you must not have missed any payments in the past year, and you may have to meet some credit score requirements.
Likewise, can I refinance if my home value has dropped? If your home has dropped in value, you can still refinance your mortgage loan. If your property value has declined to an amount less than the balance left on your home loan, you'll probably seek a government-sponsored option.
Also know, what to do if your house is worth less than you owe?
If you owe more than a house is worth and want to sell, but aren't sure what to do, here are six options.
- Stay and Pay. There are several reasons you might choose to keep making the payment on a house, even if you owe more on it than it's worth.
- Get a Loan Modification.
- Go for a Short Sale.
- Walk Away/Foreclosure.
Can you refinance a house that is underwater?
The main way to refinance your mortgage if you're underwater is through a government program called the Home Affordable Refinance Program, or HARP. Most lenders offer this program through Fannie Mae and Freddie Mac. The mortgage must have been originated on or before May 31, 2009.