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Underwater on mortgage

I'm currently above water, barely, home value 230k, loan is 222k right now. I fear I could go underwater very quickly, due to lowering housing values. So my question is, the payments are okay, nothing too crazy, but I have maybe a max of 5-6k I can throw into the loan, but I don't think that would prevent me from going underwater anyway. Would making that 5-6k and then refinance with closing costs into the mortgage be the best route to avoid going underwater, or am I already on my way there. I've paid 28k so far on the mortgage, home was originally worth 250k. What would be my best move? Credit of 770, income of around 55k a year take home. by mike.m_692_883 from Dallas, Texas. Nov 28th 2011 Reply


Korene Clopine-Seaman (korene)
#69 ranked lender in Arizona - 89 contributions

Wait until HARP2.0 comes out in March, 2012, call my friend Ron Litt with Open Mortgage and refinance. Tell him Korene sent you. 281-961-4570 ron.litt@gmail.com

Nov 28th 2011
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Jeff Dobbs (jdobbs)
#73 ranked lender in Texas - 11 contributions

You might qualify for a Fannie Mae DU Refi Plus...No Appraisal Required !Call 214-727-9281 today to see if you qualifyJeff DobbsGold Star Mortgage NMLS# 313409Local DFW Lender

Nov 28th 2011
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Gary Crist (coloradoreversemortgagelender)
#26 ranked lender in Colorado - 38 contributions

Depending where you are in Dallas, some homes are back on the rise there. Also do you plan on staying in that house for more than 3 to 5 years, because that is how long it will take to recoup your closing cost? Another facture is if the value goes down even further and you need access to cash you will have a hard time finding anyone who will loan up to 125 percent of your home value like in the old days before 2007.I would recommend you put your extra over payments into a guaranteed and safe high interest account so you can have easy access if you need cash.

Nov 28th 2011
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Marcus Buchanan (mbuchanan)
#311 ranked lender in California - 28 contributions

Heres what you can do, that is if your property is a Fannie Mae or Freddie Mac. You will need to contact a local lender in your area, submitt an application for the HARP program. They will submit your app directly to Fannie Mae or Freddie Mac. As soon as all the info is complete and submitted they should be able to know whether or not your property needs a full appraisal if any. It doesnt cost anything for doing this. Hope this helps.

Nov 28th 2011
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Bert Carpenter (BertCarpenter)
#2 ranked lender in Arizona - 1,823 contributions

Depending on your other "emergency" reserves, throwing another 6k against your principal may not be the best option. If your current loan is FNMA or FHMC owned, then you should be able to get a lower rate by refinancing under HARP. Currently you can be upside down by as much as 25% and still qualify. Find a local Mortgage Banker/Broker and have them work the numbers for you. You didn't indicate what your current rate is, but you want to make sure a refinance is in your best interest.

Nov 28th 2011
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Timothy Singleton (TimSingleton)
#58 ranked lender in Texas - 15 contributions

What are you basing your home value estimate on? Let's take a look at the recent sales in your neighborhood to make certain we know what we're dealing with. There is a program in place right now that is for underwater homeowners. It also depends on the type of loan you currently have. If you have an FHA or VA loan, there might be an option for you there as well. Basically, it's hard to know exactly until we dig into it. You can reach me at 214-733-6899 to discuss.

Nov 28th 2011
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,683 contributions

The real questions is how long do you plan on staying in your home, and what is your current interest rate. If you plan on selling / moving in the next 5 years or so, and your interest rate is 5% or above, you might want to consider a 5/1 ARM. rates for this type of loan is below 3%. Another option is to consider a 15 year mortgage vs a 30 year. If your current rate is say close to 6%, you might get close to the same payment you have now, but on a 15 year mortgage vs a 15 year. The industry agrees that we're probably at the very bottom right now, so any way you can pay your mortgage down will increase your equity position. WilliamAcres.com

Nov 29th 2011
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