How can i refinance my house when the value is lower than what i still own?

Eileen
I bought my house in 2005. I got 5year ARM with 5.5% interest. I have been trying to refinance, but the value of my house is lower than what I still own. Because my credit is great, I have stable income, I don't have any debs and I don't pay MPI, my bank offered me a program with loan up to 105% of the house value. With this program and little money to pay off the difference, I would be able to lower my payments and my interest and make my loan 30year fixed. Unfortunately, I just find out that my loan have been services by private investor. It means that I can't use that " 105% program". So at this point I'm running of options. And my loan company won't help. Where people like me can get help? All I try to do, is to do the right thing. I try to provide myself from a disaster. Year from now, the value of my house CAN BE lower or the interest CAN BE higher then is now. But then I will not be able to do anything. I won't have the money to pay the difference or to make the payments. Then I will lost my house. Can I do anything to provide this?It's great that a government is trying to help people who lost everything. But they also need to help to provide from happening. With little help now, the government can safe lot of money with can cost them to help me later.

Ching
sorry about that mommom answer ... very badly said sometimes people get on here to feel better about themselves and really don't know what they are talking about ... anyway ... obviously you didn't want this to happen or see it coming ... I'm going to get right to the point ... your only option here (in my estimation) is to get your lender/servicer to do a modificaton on your mortgage and to fix your rate so at least its not adjustable ... what exactly did you want to do ... get a lower rate through your refi? ... the going rate right now is 5%... lets be honest here ... 5.5% isn't a bad rate ... try this website out:www.makinghomeaffordable.gov

Ailene
I'm in the same situation.. I have contact my loan company they are no help to me. I'm currently in the modification stage. They told me it will takes 30-40 days for them to see if they can help me. Right now all I can do is wait. I do want to prevent myself from going to foreclosure in 2 yrs Report Abuse

Danuta
I hope you learned a lesson in this - never owe more on something than it is worth. Why would you elect to owe 105% of your house in the first place? This is why there is an abundance of foreclosures in this country today and why the economy is in the toilet.

Eustolia
your kidding.if you find out let me know.

Arletta
Sadly a refinance is nothing more than a new loan to pay off an old loan. If your house is not worth as much as you owe on it, then no one would want to loan you that high of an amount.If you have a 5 year ARM from 2005, your best bet is to save enough to put down on the new loan so your not negative. You have a little time left to do that. Hopfully in addition to saving up the extra money to put down, your houses value will go up.And to the guy who said "Why on earth would you want to take out a 105% loan". That's an easy answer: To get a fixed rate that he can count on paying for the next x number of years. Who cares what % of the house it is so long as its an amount he can pay. Some people could get a loan for 50% of the value of a home and not pay it. Some people could get a loan for 200% of the value of a home and easily pay it.