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Posted by John A. Weeks III on March 2, 2008, 8:10 pm
> Pardon what may be a naive question: $300k is the principal
> remaining on a house mortgage. The house's appraised value
> is currently $280k. Is it even possible for the house owner
> to refinance the original $300k at a different rate of
> interest?
You will not likely get a conforming 1st mortgage in this case.
But you might get an 80% 1st for $224,000, and then a H/E loan
for the remaining $76,000. H/E loans can go beyond the 100%
equity value up to 125%, which would be $375 in your case. The
interest rate on the H/E is not going to be great, but the first
mortgage should be OK, maybe a point or two above market for not
having equity.
-john-
--
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John A. Weeks III 612-720-2854 john@johnweeks.com
Newave Communications http://www.johnweeks.com
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