Can you refinance if the value of your house has lowered?

Howard
So how come we can refinance our homes when the value of the house goes up and then our payment goes up, but can't refinance when the value goes down so that the payment go down? or is there such a thing?

Eli
When or whether to finance depends upon what you are trying to achieve. When I refi'd it, was to get a lower interest rate and shorten my terms. So 3 years into a 30, I refi'd to lower fixed rate 20, chopping 7 years of payments and $62, 000 in interest, for $170 closing costs and an extra $30 per month. They even gave me a free HELOC that currently has a lower variable rate than my fixed rate. But that was early 2005.If you cannot get a lower interest rate than you already have, there is no point in refinancing, unless you need to reduce your payments for longer term (which would cost you more in the long run). You can shorten your number of payments and total interest by paying down principal (unless you got stuck with prepayment penalty).Of course if you bought at the top of the bubble and did not put enough down, you may not be able to refi. In that case you either need to ride it out, or work something out that may adversely affect your credit.

Galen
it depends what your purpose and goals are. When you refinance when your value increases what are you doing, are you borrowing against the increase of equity? If you are, and your not paying any closing costs, then yes, your payment is going up because your generally increasing your loan amount. Even if you lower your rate by a point, depending on the amount of money your taking out, your payment may increase. If you didn't cash out and only lowered your rate and your payment was higher than it was originally, something is wrong. It's all about the structure of the loan, it's not entirely about rate, it's also about term, equity, and planning. Can you refi now? I don't know. I don't know your appraised value of the home and I don't know what you owe on your current mortgage, is it possible to refi and lower your payment, it very well could be. It depends on the equity of the home and how good your mortgage professional is at structuring a loan and if they have access to programs that can help

Hermelinda
I would call three Realtors (reputable company's) and tell them that I was thinking of selling and that I want them to prepare a written market analysis. They will present it to you and it will have comparables of other properties (both for sale and have sold) in your area. This will give you an idea as to the current value of your property. Of course you do not have to sell the property and when the Realtors call back tell them you have decided not to sell.

Kaley
The best answer is the maybe... The way you can lower your rate on your mortgage is to refinance to a lower rate on the balance. You will still need enough of an equity position to get this done. If you end up short you wuld be required to bring the differance to the closing table. If your rate is lower than today's market it may not make financial sense to refi right now. An good, reputable mortgage Bank, Broker, or credit union should be able to do the math for you and break down at what rate you would save enough money to make refinancing a responsible choice. Sorry for "soap boxing'. which will follow... but we as Americans's need to be upset...The "note modification" is a way Banks/Lenders can change/ lower you rate and help you out. This used to be good business in the past. Today however most Servicing Mortgage Companies pretend it has never been an option. Your current note (the agreement which outlines your terms) is something they don't have to change if they don't want to.Lowering the rate means - lowered profit. Additionally as much as the press and politicians pretend Banks don't want to forclose on properties - the truth is they do. After deficit judgements ( the sale of that bad debt), resale of the home and tax write offs for the "losses" Banks do just fine. As I've watched Mega Banks do damage moreand more I find my frustration in the spin that allowes us to bail them out with our tax dollars adding more expense and injury to "We the People". I hope you find what you need, I hope all of us take back our politicians and make them, Dem's & Republican's alike, work for the people; not just the lobbyists and thier clients.

Faustina
You can refinance. This is between you and your bank. What your bank will look at to determine refinancing is your credit history/score and your equity in your home.

Gertie
yes if you have a hardship the lender may work with you ona modification of terms you still owe the same money your payments may adjust ( this is only if your experiencing a hardship)call your lender