Refinancing is a hot topic for homeowners these days. Given the condition of the market, many folks have decided not to sell their home but would really like to keep their payments down (especially when the value of the home has dropped quite significantly from a few years ago). Here is a pretty common, generalized scenario and questions that homeowners are asking these days which I presented to two mortgage brokers.
I bought my condo back in 2007 for $500,000 and have two mortgages on it. The first mortgage was $417,000 and my 2nd mortgage (HELOC) was $50,000. Recently, my Realtor told me that my condo is probably worth $400,000-$430,0000. I don't want to sell it now but would like to refinance my condo. How can I go about refinancing my home? What kind of documents would I need to provide? Do I need to send my own appraiser first before talking to a mortgage broker/lender? If I can't refinance , can I qualify for loan modification?