Refinance Your Mortgage Even With No Equity

Performance Property Real Estate Question

Q: Gerald, interest rates are still very low, but I bought my home 10 years ago at the height of the real estate market bubble and I still don’t have any equity.  Is there a way for me to refinance and take advantage of these low rates?  Aaron, Worcester, MA

A: Good question, Aaron.  If your mortgage loan is owned by Fannie Mae or Freddie Mac, you may qualify for HARP refinancing with the Home Affordable Refinance Plan (HARP).  The Home Affordable Refinance Program (HARP) was created to help homeowners who are current on their mortgage payments, but have little to no equity in their homes, refinance their mortgage.   So, if you owe as much or more than your home is currently worth, you may be eligible for a HARP refinance, which could save you money with a lower interest rate.  No minimum credit score is required and closing costs can be bundled into the new loan so you don’t need much cash up front.  There’s no guarantee, but it’s worth  taking the time to explore as a possibility.

Thanks for your question, Aaron, good luck.  For more real estate tips and information visit my blog at