If my current mortgage is more than what my house is currently worth can I not look into a 15 year fixed rate?

Asked by edickerson626, Harrisburg, PA Tue Apr 2, 2013

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William Morr…, Agent, Harrisburg, PA
Wed Apr 3, 2013
Why do you not just accelerate your current payments? This would in essence reduce your commitment term to 15 years or maybe less. There are multiple benefits to this as well. First you would have no charges associated with a refinance . Second you would not have to worry about the property appraising to meet a value that your lender would require. Thirdly and most importantly, if at some point in the future your financial situation would tighten, you would have the benefit of falling back on the lesser payment amount of the 30 year mortgage without any negative impact on your credit standing.

Keep in mind that extra payments that you make will reduce you principal amount owed, which will be of benefit to you later as your income to debt ratios will be enhanced.
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Jerry Kensin…, , Harrisburg, PA
Tue Apr 2, 2013
Hello. Thank you for posting your question.

For any conventional mortgage, you can typically only refinance up to 95% of the appraised value. There are however program that will allow you to refinance when you are upside down to a 30 year mortgage. Depending on what your rate is now, it still may make sense. You could always pay extra to the principle and pay it off in 15 years. I'll be happy to run some numbers for you to help you decide if refinancing is right for you.

Thank you,
Jerry Kensinger - NMLS #186925
717-884-8823.
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