Follow up question about refinance of underwater home (Not wasn't clear how to use this program as email string, so I'll start with

Asked by Calwalker, Sacramento, CA Mon Nov 29, 2010

original question question) Org Q: I own a house with a loan balance of $108,000 at 6.25% and market value of $92,000. I'd like to refinance at lower rate. Bank of America holds loan. I'm current in payments and have never been late. Unfortunately my loan is NOT Freddie Mac or Fannie May, or FHA. Also I'm not in financial hardship & earn $50,000 a year.
Are there any ways to refinance without paying in $20,000 or more in cash to pay down the mortgage?
One complicating factor is that I have a long commute and I'm considering renting out the house and moving closer to work.
FURTHER DETAILS: My goals are: 1. avoid the long commute, 2. keep house until retirement in 12 years or at least until the value exceeds mortgage (plus any buy down). My current payments plus expenses roughly match expected rental. But there could be other expenses (repairs). A refinance would save me a lot over12 years & cover unexpected costs.
Instead of a buy down, I wonder if lender take as collateral, a $35,000 IRA?

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Alexander Gr…, Agent, San Jose, CA
Thu Aug 15, 2013
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at You can check us out at I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes
Michael Smith…, , Roseville, CA
Wed Jun 20, 2012
Are you sure it is not Fannie Owned?
Is it a CalPERS loan? They are owned by Fannie.

Check out this link to find out:
0 votes
Jim Walker, Agent, Carmichael, CA
Mon Nov 29, 2010
Hi Cal, You can add additional comments on your "email string" more commonly known as a "thread"
+ You click the button that says "answer this question" and you can then "answer" your own question...
Then click the button below your answer box labeled "answer"
0 votes
Lee, , Sacramento County, CA
Mon Nov 29, 2010
Again a refinance is not a good ideal for saving over 12 years is about 16k, if you cannot get a rate of less than 4.25% depending on your credit, while the rates now are starting to increase 4.375 as of today.How much is the repairs ? Can repairs offset the cost in 12 years, while the home value would probably past market value,equity and updates may make it more valuable.
Lee Lacey
0 votes
Maurice Thom…, Agent, Mathers, CA
Mon Nov 29, 2010
Goal 1) If you want to be closer to your job, then you have the right idea to move. Just make sure it makes financial sense or the financial cost is worth the convenience.

Goal 2) You have to go through a HAFA certified agent to get a loan modification through HAMP. It gives a process and is federally backed. This process is suppose to be faster yet you need to have a financial hardship. Or do a normal loan modification to lower the interest rate. The amount of interest you will save will help you will your retirement. You are thinking long term so you have an advantage. The market should bounce back. I don't know if the IRA would work but you can ask a lender. Renting sounds like a great idea, but know there is work involved.
0 votes
Maurice Thom…, Agent, Mathers, CA
Mon Nov 29, 2010
So the way to get started is to find a real estate agent that is HAFA certified. They can see if the HAMP will work for you and find a new home for you, if it makes financial sense. If that doesn't work then find a lender to help with the reduction on the rate. Just keep your long term thoughts and you will be fine. If you decide to rent see if it is something you want to deal with on your own or hire a property manager.
0 votes
Teri Andrews…, Agent, Auburn, CA
Mon Nov 29, 2010
thanks for the additional details. Is your current payment based on a loan amount close to the $108,000?

Some things to consider, if you re-fi with the intent to rent out the home and no longer use it as your primary residence you will most likely be at a higher interest rate than if a re-fi for your primary residence, also you will most likely be required to have 20% equity for an investment property. You need to talk to a mortgage broker for the details.
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