So my home is worthless :(

[A.Nonymous]

I've been trying to get my financial crap all together and organized. I do this about every 2-3 years it seems. Anyway, I went today and talked to a financial advisor (who scared me because of how young he is) and he mentioned I should consider a re-fi on my house. I'd been considering this anyway since I got in at the low rate of 6.25% (wooo hooo!!!) and rates are half of that nowadays.

So I contacted the bank I'm currently with (BOA) who offered me 4% (meh) and several other lenders who refused to talk to me at all when they ran the numbers and found out that I 've got all of about $1k of equity in my house. So my home is basically worthless and if I sold it, I'd likely sell it at a loss by the time the smoke cleared with fees and everything.

I don't suppose anyone has any super-secret refi secrets? Or am I better off with my strategy of just tossing gobs of money at it?

 

[AntimonyER]

I am in the same position as you... I am about break even in my home right now (maybe 5-10k in equity, due to the garage conversion to a bonus room, added 400 sq ft of heated/cooled floorspace) Also have the same interest rate on my existing mortgage... Thankfully it sounds like housing is finally starting to creep out of the disaster its been for the past 4 years. I have 2-3 more years to wait it out, I am just hoping for 20k in equity to bring to my next home.

 

[IOWA]

I've been trying to get my financial crap all together and organized. I do this about every 2-3 years it seems. Anyway, I went today and talked to a financial advisor (who scared me because of how young he is) and he mentioned I should consider a re-fi on my house. I'd been considering this anyway since I got in at the low rate of 6.25% (wooo hooo!!!) and rates are half of that nowadays.

So I contacted the bank I'm currently with (BOA) who offered me 4% (meh) and several other lenders who refused to talk to me at all when they ran the numbers and found out that I 've got all of about $1k of equity in my house. So my home is basically worthless and if I sold it, I'd likely sell it at a loss by the time the smoke cleared with fees and everything.

I don't suppose anyone has any super-secret refi secrets? Or am I better off with my strategy of just tossing gobs of money at it?

Eh, I personally I would just take the 4% for now and and be patient for a bit. People keep hoping for a "recovery" when I don't think it's going to happen -- the housing market was way over-inflated and the values now are what they should have been 4 years ago. Houses never should have climbed to those kind of prices, and sadly a lot of people got burned.

 

[A.Nonymous]

I filled out the form for BOA (previously I had just run their calculator). Turns out they won't re-fi me either because of the lack of equity.