Can I refinance if the value of my house has dropped $60,000?
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Maybe. If your home was worth say $300,000 and now its worth $240,000 with a mortgage of about $200,000, you could since your mortgage is still less than the value.
But my guess is your question, was really more along the lines of can I refinance when my mortgage is greater than my home value…if I am right… the answer is no.
Sorry…
Unless you have the cash the buy the mortgage down below the value, you’ll not be able to refinance. The days of 100% or more LTV refinances are gone.
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Sandy,
Sorry to hear about your flood loss. Lenders use flood maps to indicate the flood plain “level”…different levels indicate different risk. Only at the highest risk level is flood insurance a requirement to close the loan.
You’re home sits at a risk level lesser than the highest…so it’s up to you to decide if you need flood insurance.
Sadly, it sounds like you might. Flood insurance is very expensive and on a fixed income it may not be worth it. Talk with your insurance agent and see if there are any home owner riders you can add cheaply that covers water damage from any source…broken plumbing or acts of God.
Of course, you could sell and move to a location where flooding isn’t even remotely possibility.
Good Luck,
August 13th, 2008 at 5:28 pmRKB
I purchased my home two years ago during which time it has flooded twice. We have had to do numerous repairs resulting in thousands of dollars. We do not carry flood insurance as it was not required by lender and were told most people in this area do not carry it. My mistake!! We were also led to believe it was cost prohibitive. Our lender did not require it which leaves me to believe we are not in a flood plain. Today, strictly heresay, a neighbor said this area is in a flood plain. I find this hard to believe since the lender did not require a flood policy. Long story short, I have spent all my extra funds on the first flood to replace pergo floors in 6 different areas. The flood that happened just yesterday got all 3 bedrooms and hall carpet. I am at a loss as to what to do and am humbly asking for your advice. My husband and I are retired and on a fixed income. Do you have any suggestions? Thank you; Sandy “Stamper” Roberts.
August 13th, 2008 at 11:58 amLeave a Comment