What are my chances to refinance if my house value has droped?

zephyrs asked:


I bought the house last year for $377K, Now it is worth $300 - 320K. This is the estimate that I got from a loan officer.

I owe the bank about $280K. Is it possible to refinance it? I have excellent credit score and solid income. My current lender is Bank of America

Shannon

Tags: House Value, Loan Officer, Refinance House

This entry was posted on Friday, July 24th, 2009 at 5:37 pm and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “What are my chances to refinance if my house value has droped?”

1. Steve D Says:
   July 26th, 2009 at 2:35 am

   Andrea

   As long as the balance on the loan is less than the appraised value of the house, you are eligible for refinancing (assuming all other factors are good, like employment, credit, etc.). It is only when the loan balance is higher than the appraised value that you have a problem. Be advised that the figures you provide place you below 20% equity and you will probably be required to purchase PMI.

2. Noneya Says:
   July 27th, 2009 at 2:31 pm

   Samantha

   What kind of loan do you have now, FHA/VA or Conforming?
   You have a couple of options.
   If it appraises for the full 320K you could refi a conforming 30 year fixed around 4.375-4.5%.
   If the appraisal comes in at 300K you can go with an FHA loan.