Need information on how to go about refinancing. Bought our house in 2005 but since all the house sales in our neighborhood have gone down and so has the value. What are the chances that we'll be able to refinance.
As long as you put a decent amount down when you bought, have good credit and a solid income, you should be fine.
I asked an in-law about your question. He used to work at a bank in the mortgage area, I think in the underwriting of loans. He suggested having a realtor check out your home and provide an estimate and comps. You can say you would like to see if it would be worth selling and then just say you won't do so at this time. Some realtors will do it for free since it might mean a future customer while others charge anywhere from a few bucks for the computer time to a lot of money. If the value given is more or maybe just under your current mortgage, you have a better chance of refinancing. You also want to consider how much longer you will be in the home since there are fees for a refi. Then you can call your bank and see what they say, using the realtors' info as a starting point. Even though they do have the program to help homeowners, I know some people that could not get a modification until they stopped paying their mortgage. Totally ridiculous.