Mortgage Finance True or False

True or false:  being underwater (owing more on a home than the home’s worth) precludes an owner from refinancing.

Answer:  False.

You’re excused for answering “true”; normally, if the homeowner has no equity, there’s no collateral to secure the lender’s mortgage.

Today is most certainly not a “normal” environment, though.

Thanks to a variety of government programs, it is now possible to refinance even if the homeowner has negative equity.

If you’re reading this and want to know more, call (952-285-3182) or email me at and I’ll put you in touch with a reputable lender who’ll explain the options.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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