It is not impossible to refinance an underwater mortgage. Nearly a quarter of homeowners in the U.S are currently underwater on their mortgage, mostly due to the fall in home prices that occurred during the Great Recession. Mortgage holders that have continued to make their payments on their homes and have good credit scores may find that banks are more willing to discuss refinancing their home with them. Here are some tips that you can follow to make the refinancing process easier.
Different Lenders Have Different Qualifications For Refinancing
Lenders do not necessarily use the same criteria for evaluating who qualifies for a mortgage refinancing, so just because you do not qualify with one lender does not mean that you will not qualify with another lender. Many lenders have loosened their guidelines for refinancing an underwater mortgage because so many homeowners are now finding themselves in that situation. Review the lending criteria for each of the lenders that you are interested in working with to see if you will qualify for a refinancing under their guidelines.
Educate Yourself On What Is Available
It will be hard for you to get the best deal on your mortgage if you do not know what kinds of deals are available out there. It is important for you to educate yourself on the different kinds of programs available from both private lenders and government agencies. It is also important to learn the terminology used so that you truly understand all of the details of the programs you are considering. By expanding your search, you may find opportunities that you never knew existed.
Get Quotes From Multiple Lenders
There are a number of ways to get quotes from multiple lenders so that you can see who has the best offer for you. Some people choose to use a trusted mortgage broker that can negotiate on their behalf to get the best rate for their refinancing. Other people choose to use online websites that provide quotes for multiple lenders after they have filled out the online form with the details of their situation. Regardless of the method used, each offer should be evaluated carefully to see which ones will benefit you and which ones are not worth your time. While you may not be able to get exactly what you want, you may be able to qualify for an offer that is pretty close to being ideal.