Last week we had an article here about having an underwater mortgage and what could be done in that case. From all the options, one was to refinance the mortgage. Let's see now what underwater mortgage refinance options we can find and you'll be able to decide which works better in your case.
Refinancing an underwater mortgage through HARP can save you $300-$400/each month on your mortgage payment, so it's worth looking into.
This is another program dedicated to homeowners who are NOT behind on their mortgage payments. If you do have an underwater mortgage and was still able to keep up with the payments, you might be eligible for FHA Short Refinance. If your lender agrees to participate in this refinance option, they'll be able to reduce the amount you own to no more than 97.75% of your home's current value.
Your mortgage is not owned or guaranteed by FHA, VA or USDA.
You are eligible for the new loan under standard FHA underwriting requirements.
Your total debt does not exceed 50 percent of your monthly gross income.
Because of a financial hardship, you are struggling to make your mortgage payments.
You are delinquent or in danger of falling behind on your mortgage.
Your property has not been condemned.
You owe up to $729,750 on your primary residence or one-to-four unit rental property (loan limits are higher for two- to four-unit properties).
You have not been convicted within the last 10 years of a crime in connection with a mortgage or real estate transaction.
Do you know other underwater mortgage refinance programs? Which one do you feel is better for your situation? Have you used any option?
Underwater Mortgage: What Should You Do?