Can you Refinance an Upside-Down Mortgage?

Finance, Home & Family, People
on September 19, 2011

Dave Ramsey is a money-management expert, national radio personality and best-selling author.

Dear Dave,
Is it possible to refinance if you're upside down on your home?

-Sarah via Facebook

Dave Says: Refinancing a house when you owe more than it's worth is virtually impossible. There's really not a standard program for a premium rate under these circumstances. There are only two chances you might have in this situation. One is, since your existing mortgage company is under-collateralized-meaning they're already in a financial mess with you-they may be willing to work with you and reset the loan at a lower interest rate. The other would be getting some rip-off, subprime rate, but these things played a big part in the economic mess this nation's in right now. Stay away from them! Still, there's nothing wrong with gathering information and learning about new or different programs they're coming out with every day. Keep studying, because things are always changing, but today your options are limited.