Have any underwater homeowners refinanced?

MrsJenniferS · October 2011

So this isn't a "first-time homeowner" scenario, but...

Has anyone who's underwater on their mortgage (or doesn't have enough equity) refinanced using the new HARP or FHA refinancing programs? Just wondering what people's experience has been. I'm trying to decide if the hassle/closing costs make this worthwhile for me.

sjb&apa · October 2011

We did a VA streamline refi on our house. We weren't underwater, but it wouldn't have mattered if we were since there's no appraisal with the streamlined refi. This option also exists for FHA loans - there's a streamlined refi option with no appraisal.

Not sure if this differs between VA & FHA, but we paid no closing costs ... just paid to set up escrow accounts for our insurance & property taxes. We did have to pay a 0.5% funding fee with the VA, but I don't think that exists on FHA loans.

ArcadianDreams · October 2011

The first hurdle is finding out if you are even eligible. The programs have restrictions on lender, how underwater you are, etc. Many underwater homeowners (including us) do not meet the criteria, which is a total bummer. If you can get into it thought you can save a ton right now. You won't know until you talk to someone.

+Krystee+ · October 2011

We refinanced (we owed about 115% of the house's value at the time, and the max to be eligible was 125%). It shaved off 1.5% interest for us, so it was well worth it.

+Krystee+ · October 2011

I forgot to add that there wasn't much hassle, but there were closing costs. We calculated that we'd have to stay here about 14 months to save more than we spent on closing costs, and we know we'll have this house much longer than that, so it was an easy decision.

Have any underwater homeowners refinanced?

Re: Have any underwater homeowners refinanced?

Choose Another Board

Search Boards