No. of Recommendations: 1
My situation is similar and I am looking for a way into a lower interest rate. My home equity loan is at 11.8% and with the drop in my home's value, my combined LTV is too high to refi as far as I can tell.

What is your combined LTV? Is the LTV too high to refi because you are more than the 80% - 90% current guidelines for refinancing? Or is it because your house value has dropped significantly so you are more than 105% LTV?

The reason I ask is because the new mortgage plan (details to be announce March 4) is supposed to allow homeowners who are slightly underwater (105% LTV) to refi.

Do I have any options of getting out from under this loan and into something with a similar payment but a lower interest rate, or do I have to be resigned to keep this crappy loan until I get enough equity back in the house to refinance it?

Well, other options would be dependent on your cash flow, and what type of loan your home equity loan is. You probably won't get a better rate on an unsecured loan than you have on the secured loan, unless you are playing the BT game. Do you have the credit to be able to do that? And if your current secured loan is a Home Equity Loan, rather than a LOC, you generally have to pay the entire loan off, or you will still have to make the monthly payments, so just balance transferring part of the balance won't do you a lot of good.

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