I have a 420 000 mortgage but my house value now is around 250 000 my fico is 740780 can i refinance?

Addie
A house few block from mine with exactly the same design is being short sale for $148, 500. I want to let go of this house but before that I want to buy a much cheaper but bigger house. Can I refinance this house to a much lower value?

Louis
Look into something called a "short sale refi" - this means the lender 1 (which holds your current loan) accepts to take a lose to "settle out" the loan for less than what its worth... then you have lender 2 (the one who makes the new loan) pay off the settlement amount.The concept is wonderful but only few people actually qualify and on top of that the lenders who do these will change state to state.Also - becareful if you are planning to "buy and dump". it is a phrase used when homeowner know they can buy another house cheaper down the street - soooo they buy that house at half price and "dump" the old house. In some states this is illegal so be careful.

Lonny
Only if you have the $170, 000 in cash to bring the mortgage balance down to the appraised value. Your FICO is great, but a bank isn't going to refinance to an amount greater than the appraised value of the house.

Arnette
Wow, I am sorry. That is an extreme case. You can refinance if the bank will rely on the previous appraisal, depends how old it is, but I would expect not. I am confused about how you want to buy another house before you let this one go? If you walk away from this mortgage it will kill your FICO, and you have no equity in the house tap into...