Can I refinance my mortgage if I am underwater but have liquid funds?

Chuck, You wouldn't even have to put down $100,000. About $80,000 would do it depending in closing costs. If we did a no cost loan then $77,000 would be enough (based on the numbers you gave), but the rate is slightly higher for a no cost loan. Now you would still have to credit and income qualify. Give me a call if I can be of further service. Brad Cahoone - NMLS ID 184176 -Global Home Finance Inc - NMLS ID 316441 -972-724-3222 ext 227 - 866-515-4097 ext 227 toll free - 972-692-7888 efax -972-420-1999 land fax - globalhomefinance.com - Saving Texas One Homeowner At A Time!!!

Also, for the MCC you have to apply to see if they will let you keep it on the new loan. Since you had it before you just have to ask them to carry it over to the new loan. I believe the other LO thought you were asking if you could get an MCC on a refinance and didn't understand you already have it on you existing loan. Here is the link for the site to allow you to refinance and keep your MCC: http://www.tdhca.state.tx.us/homeownership/fthb/mort_cred_certificate.htm#refi-mtg .Here is the link to the actual form: http://www.tdhca.state.tx.us/homeownership/fthb/docs/TAB15-RefiMCCLoanApp.pdf . Hope that helps. Brad Cahoone - NMLS ID 184176 -Global Home Finance Inc - NMLS ID 316441 -972-724-3222 ext 227 - 866-515-4097 ext 227 toll free - 972-692-7888 efax -972-420-1999 land fax - globalhomefinance.com - Saving Texas One Homeowner At A Time!!!

If you refinance conventional, you would need to use $80K of your inheritance to be at 80% LTV and eliminate mortgage insurance. You do need to have better credit scores to qualify for conventional financing, so you should look at all your options.. You can also refinance with FHA in a 15 year mortgage and although there is mortgage insurance, it's very low (about $40 per month). Your monthly payment would still be lower than your paying now and you will be on track to pay off your home in 15 years.. as far as your MCC credit, you can refinance and still keep your tax savings... contact a local mortgage broker, not a bank, and apply with them... they can look at your complete profile, and give you several loan options to consider.. WilliamAcres.com

These are all good answers. To get out of mortgage insurance, you would need to refinance out of your FHA into a conventional loan. You would only need to put down as much cash necessary to get you to a Loan-to-value if 80% based on the new appraisal you will need. If you plan to be in the home for more than 2-3 years, doing a "No-Cost" refinance may actually cost you more in the long run. Work with a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, they will be able to help you with the calculations to determine if No-Cost" makes sense for your situation. He/She will also be able to help you determine if your MCC is transferable. It should be, but you want to know for sure. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com