If you’re considering mortgage refinancing but have less than 20% equity in your home, cashing in could get you approved, if you’ve got the money. If you’re not already familiar with cash-in mortgage refinancing, as the name implies, you’re paying down your home loan balance to get a favorable loan-to-value ratio (LTV). Once your LTV is what it should be you’ll be able to qualify for today’s low refinance mortgage rates from top mortgage lenders like Amerisave.
What do you do if you don’t have the cash on hand to pay down your mortgage balance?
There are alternatives to cash-in mortgage refinancing, the most promising being President Obama’s restructuring of the failed HARP program. Another alternative for homeowners with FHA backed mortgage loans is the FHA streamline refinance. Here’s an article by Dan Green of the Daily Mortgage Reports with more suggestions for alternatives to cash-in mortgage refinancing.
The hard part about a cash-in refinance is that not everyone has spare cash just lying around. If this describes you, the good news is that you have choices. There are alternatives to cash-in refinancing.
HARP 2.0 should be widely available January of 2012 and is your best bet for underwater mortgage refinancing. There is a catch: you have to be current on your payments and your home loan needs to be backed by Fannie Mae or Freddie Mac before May 31st, 2009. If you’re underwater with a government backed home loan, don’t overlook the FHA streamline refinance or VA streamline refinance options.
You can learn more about getting today’s lowest refinance mortgage rates without paying unnecessary fees by checking out my free Underground Mortgage Videos.