X

Up for the quarter, down for the year? See what's happening with home affordability in our latest "Income you need to buy a home in the top 50 metro areas".

Up for the quarter, down for the year? See what's happening with home affordability in our latest "Income you need to buy a home in the top 50 metro areas".

Don't have 20% equity? Consider FHA refinance

Q: [HSH] wants the federal government to issue "value gap coverage". That would be for those homeowners who are underwater. But, what about those (my son) who are not underwater, but do not have the 20% equity to refinance?

A: It's a little bit of a myth that you need a 20% equity stake to refinance today. Borrowers with jumbo mortgages have the most significant challenges in this regard and will need to shop around very hard to try to find a mortgage lender who will refinance at a higher loan-to-value (LTV) ratio. However, borrowers with more modestly-priced homes can refinance into the FHA program, where rock-bottom interest rates are available even if you don't have great credit. There are home-price limits, but you might be surprised how liberal they are.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
Please enter a question.
Please enter name.
Please enter email.
Captcha code invalid
Q: How are mortgage interest rates determined?
APR 25, 2023
A:

Mortgage rates fluctuate from day to day, depending on a number of factors related to the economy and to choices made by investors. While some mortgage money comes from deposits held by banks and credit unions, most of the funds for borrowers come from investors in capital markets.

Read More
Q: Why are mortgage rates higher for investment properties than for second homes?
APR 24, 2023
A:

Investment properties usually run about one percentage point higher than owner-occupied residential mortgages.

Read More
Q: What loan amount does a mortgage need to be for it to be considered a Jumbo Loan?
JAN 09, 2023
A:

This question used to have a simple answer, since there was a "bright line" definition -- the conforming loan limit....

Read More
Add to Homescreen?
X
X
Install this web app on your phone :tap and then Add to homescreen