Refinance Mortgage Without Harming Your Old Mortgage

Have you wondered how to refinance an underwater mortgage? If so, then this article sheds some light on it. This article looks at how to refinance an underwater mortgage without Harp. What are underwater mortgages? An underwater mortgage is a mortgage held by the home owner that is on the verge of losing his property to foreclosure.

When you refinance a mortgage, you have to take into consideration what interest rate you will get with the new loan. Most people want to get the lowest possible interest rate. A high interest rate eats up a lot of your precious money. The good news is that with a little bit of work you can get refinance regardless of your credit status.

In order to refinance an underwater mortgage, one must first find out if he even has a chance of qualifying for a home refinance loan in the first place. You see, underwater mortgage is a loan that is secured by a property that belongs to the loan giver. This means if the homeowner were to default on his loan, then the lender would have to seize the property to recover his losses. And since he is the one putting up the security, he will get the deed in case of default.

Before a homeowner goes in search of lenders willing to refinance his loan, he needs to know how much his refinance would cost him. It is best if the homeowner finds out the cost of a typical refinance mortgage from a few different lenders before he settles for a particular lender. The reason why this information is important is that different lenders charge different rates. By knowing the cost of refinance you can better judge which lender has the better deal for you.

Once you already have a shortlist of potential refinance mortgage lenders then it is time for you to talk about your underwater mortgage. During the refinance process, you need to convince your lender that there are still beneficial options for you to get out of your underwater mortgage. In order to convince your lender, you must present your current financial situation with them and point out the reasons why you have reached the financial problems that you are facing.

But before your lender can give you any kind of refinance, he will first have to see that you have no other choice but to get rid of your mortgage. The main reason why you will be allowed a refinance is because your house is already in danger of repossession. So when you are negotiating with your lender, make sure that you bring out all your reasons as to why you need a refinance. Remember, the sooner you sell your house before it gets foreclosed, the more money you will have to offer your lender as a form of compromise.

If it was mentioned earlier that you will only be able to refinance an existing mortgage without having to pay any penalties or fees, you need to know that this is also one of the few refinance options that will allow you to get the best deals. When you will agree to a refinance deal, your lender will agree to waive off certain fees and charges. Some of the fees that you will be able to waive include accrued interest, finance charges and home inspection fees. As much as these fees may seem like they are nothing, it will still help you in saving up thousands of dollars.

Once you get your refinance mortgage without any harping on your previous decision, you will then need to work on lowering your monthly payments. Keep in mind that lenders may not be willing to lower your mortgage payments by a significant amount if they think that you will be able to keep up with them in the future. So it is important that you do not forget about your present circumstances when talking about your refinance mortgage without any harping. After everything is settled and all legalities are out of the way, you will have to focus on paying back your loan. As long as you make your monthly payments on time, you will be able to get your home back.