Refinancing and combining 1st and 2nd mortgagesbut my house is worth less than i oweam i totally stuck?

Hedwig
I have a 1st mortgage at 6.5% and a 2nd mortgage at 8.25%. The first is an interest only, the 2nd is a traditional loan. I want to combine the two and hope to make lower payments and have more go towards the principal. Even though the 2nd loan is supposed to be a traditional home equity loan, almost always it goes towards the interest. But I don't think that's my biggest problem. My biggest problem is like many today...my house is worth way less than what I paid. I heard I can't refinance when this happens...is this true? Do I have any options available to me, or must I wait and hope that someday the home values go back up again?

Omar
No you are not stuck at all. My company specializes in these scenarios, we negotiate with the lender to lower the principle balance of your mortgage down to the current resale value of your home. Sometimes down to 85% of the value, putting equity back into the property. This only works if you are going through some kind of hardship and you want to stay in your home. Email me if you want to get into the program. cturner@shortrefinow.com

Georgianne
I hate to break it to you... but you're stuck.I'm also in a similar situation where my 1st mortage is interest-only at 6.1% and my 2nd is 8.25% and is also a traditional home equity loan (I did an 80/15/5 loan to get my house). But, unlike you, i bought my house recently for 100K under the appraised price so i have built-in equity. However, since my equity is less than 80%, banks don't want to refinance... yet.In your instance, since your home is worth LESS than what you owe, you're stuck until home values rise again.Sorry to break it to you but no one will loan more than a house is worth right now.