Even
though the home values are increasing in many parts of this country, still
there are numerous people, who are looking for refinancing
an underwater mortgage. It means they owe more money on the mortgage
than the worth of their home value. However, before you look for more details,
it is important to be aware of what an underwater mortgage actually is.
The
underwater mortgage is the one where the homeowner owes more money on a
mortgage than the worth of the home. For instance, if the value of your home is
$300,000 and if you owe more than that on the mortgage, it will make you
upside-down or underwater on the mortgage. In some cases, this is also
considered as negative equity.
For
the underwater mortgage refinance borrowers, refinancing usually means getting
a new mortgage while replacing the old one with the aim of lowering the
interest rate, reducing monthly payments or changing the loan program with a
fixed rate mortgage or an adjustable rate mortgage. In the majority of the
cases, there is no need to have equity in the home to refinance in case you
qualify for any specialized refinancing programs, which is available over the
past few years.
For
most of the loan borrowers, now there are myriad options available to refinance
their investment or present home no matter how underwater they are. Underwater
homeowners must contact at least one lender aside from the present bank to refinance
underwater mortgage without HARP. There can be great differences in the fees
and rates offered by the present services and other lenders therefore it is
necessary to shop around.
For
the underwater mortgage borrowers with solid payment history, HARP might help
to refinance the underwater mortgages. Some of the qualifications that need to
be met to get this type of refinance are:
- The loan borrower has to be the owner-occupant of any
one-to-four unit home
- While applying for the loan, the loan borrower has to
be current on the mortgage payments
- The amount that the person owe on the first lien mortgage should not exceed 125% of the present market value of the property.
To
get more information on bad credit mortgage refinancing
loans online, you can consider paying a visit to mortgagrefinance101.com
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