I owe more than my house is worth i also have an intrest only loan how do i refi???

Eliana
I have an interest only loan that I have locked until 2011. I owe $256, 000 on it. It's worth about $230, 000. I want to refinance to a 30 yr fix but don't know what lenders would approve me since I owe more than my house is worth. I need to start paying on printable. Please help with any suggestions.Jason

Arden
Contact your mortgage company first and see what kind of a refi deal they will work for you. If your current interest only loan is locked till 2011, you may just ride it out and hope the value goes back up. You should also add money to your monthly payment as a principal only payment.

Gertha
You cannot refinance the house if you owe more money on it than it's worth. That is the bottom line.There is nothing stopping you from paying toward the principle...if your interest only payment, is, let's say, $1000 per month, and you send them $1500, then the $500 goes towards principle.That is what you are SUPPOSED to do with an interest only mortgage and why they are only good for disciplined homeowners.If you cannot afford to pay toward the principle with your current loan structure, then there isn't anything you can do unless you want to do a Deed in Lieu.

Brittany
with the market so tight now all u can do is work really hard to save a down payment or pay extra on your payment until you can get some equity. Its a tough boat to be in, your in my prayers.