Kinecta FCU is the biggest credit union in California, if you give me current balnce on your loan home address and brief me on your financial situation I will let you know if you are in the market or you have to carry your debt.
In your case there are few options but details must be disclose, I welcome you to one of our banking offices or contact me.
With the tightening credit market and more stringent lending conditions, you will have a difficult time refinancing your home without any equity. The problem is that lenders now want to make sure that if their clients default on their loan, they will have something to take back in terms of the value of the home they are insuring. There are 100% loan still available. However, the interest rate is not as competitive as loans for only 80% of the appraised value of the home.
That being said, you may have an opportunity to get a lower interest rate for a jumbo loan before the end of the year with the passage of the Economic Stimulus Act of 2008. Under the Act, the Federal Housing Administration (FHA) has increased the limit on the loans it will insure to up to 125% of the area median housing price in areas where the median is between $271,050 and$729,750. These limits will remain in effect until December 31, 2008. Beginning January 1, 2009, the loan limits will return to the previous limit of $362,790.
The new FHA loan limits are based on the county in which the property is located. The FHA loan limit increase that will be in effect in Orange County through December 31, 2008, is $729,750 for a single-family residence. As you are only seeking a loan of $620,000, that amount would qualify for a loan that is guaranteed by the FHA if you secure it before the end of the year.
I hope this helps Shanna! If you would like to get an idea of the interest rate you qualify for on a re-finance of your home, please feel free to contact me and I will provide you with an individual rate quote.
Amanda R. Wheeland
Real Estate Broker & Lawyer