How can I refinance if I have only 5% equity in my principal residence?

dannyb41 asked:


I want to refinance to relieve myself of the mortgage insurance payment. I have an additional house that is paid off which I am currently renting. Is there some way I could combine the two properties to make the refinancing of my current home possible?I

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Tags: Mortgage Insurance, Mortgage Payment, Refinance

This entry was posted on Sunday, February 1st, 2009 at 9:55 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “How can I refinance if I have only 5% equity in my principal residence?”

1. f80william Says:
   February 4th, 2009 at 1:25 pm

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   You can obtain a small mortgage on the free&clear house and paid down the loan on the first house.

   for most mortgage loans, if the loan-to-value ratio is less than 80%, you can avoid paying the mortgage insurance.

   run the numbers, make sure you can manage the new payments and it’s worth your time to do it.

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