Any options to refinance with less than 20% equity? (insurance, loan, credit score)

[arielmina]

Given the following scenario, is there anyway to refinance out of this situation:

1. Mortgage is not Fannie or Freddie owned
2. Homeowner has about 16% equity at this time (had been as high as 50% before the bust)
3. Howeowner credit scores are excellent

[SummerSurana]

Yes there are provided the homeowner is willing to take a rate of 5.25%

Try FHA loan and you can refi up to 97.75% or if they want conventional loan then depends on which state they are located in. Most of the parts in TX can be refied upto 90% as there are mortgage insurance companies who provide MI. In other states it highly depends if the property falls in the declining zone or not.

Let me know if you need anymore help. check my profile and contact me directly.

[dad2jules]

You can also easily get a 2nd mortgage for the 4% to avoid MI if you wanted to.