Refinancing a house that's underwater

Mortgage and Lending with Black Rose Fishing Charters and CastNCrew Fishing Show

Welcome to my Mortgage Information Center!   I am going to use this forum as a blog for me to provide  you with mortgage news that may help you.  If you are in the real estate industry, perhaps some of my tidbits of information will help you help your customers.  Many of them will have mortgage questions and I look forward to answering them for you. 

Today’s topic is going to have to do with underwater home values.  It’s an unfortunate reality today.  Many houses are worth less than they were 3,5, or maybe even 10 years ago.  People may have little or no equity in their homes, despite paying their mortgages for years (and hoping for appreciation in the market as well).  This is depressing for the homeowner, for sure.  It’s one thing for the price to be down from what you paid for it; it is another thing completely to OWE MORE MONEY ON THE HOUSE THAN IT’S WORTH!  Many people have taken out mortgages in the past with a second loan so that they could avoid PMI.   This was referred to a “piggyback” loan.

With liens, the primary loan/value of the home gives you a LTV (Loan To Value).   When you add the second loan to the first loan and divide by the value of the home it gives you a CLTV (Combined Loan To Value).  The LTV and CLTV are very important values when it comes to underwriting a mortgage.  They can affect the rate that you receive or even make you ineligible for a loan.

DU Refi Plus is a program that we offer at Benchmark Mortgage to address this huge problem of homes being “under water”.  Starting on Feb 1, 2013, we are able to consider refinancing a mortgage with a maximum of 95% LTV and UNLIMITED CLTV!  This news just came out so I wanted to pass it on to you.  I look at this as an incredible opportunity for people who thought that they would never be able to refinance to explore this option. 

If you have any questions about what kind of mortgage is right for you, I can be reached at 508-269-1882 or emailed at 

Thank you for reading my blog and come back soon.  I will be adding more content often. 


Rich Antonino 
Loan Officer
NMLS ID 984202

26 Howland Street
Plymouth, Ma 02360
Office:  508-746-7733
Cell/Text: 508-269-1882
Fax: 774-283-9919

Comments (7)

Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

If anyone can ever do a re-fi at 90% or 100% LTV on a rental property in Colorado, I'll be filling out the application immediately.

Feb 02, 2013 04:00 AM
Paddy Deighan MBA JD PhD - Vail, CO
Paddy Deighan J.D. Ph.D

sounds too good to be true!!! I will pass this along to my list and see what happens !!

Feb 02, 2013 04:24 AM
1~Judi Barrett
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

An unlimited Combined Loan to Value is difficult to believe..

Are other mortgage companies doing this also?

Feb 02, 2013 09:40 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M
Rich - That sounds like it could be a good option for many people. How do you get the second to suborindate to the new first?
Feb 02, 2013 10:15 AM
Steve Warrene
Your Town Realty - Lower Burrell, PA
Pittsburgh Real Estate Investment Specialists

We just took a listing today and the sellers were talking about a new program for sellers to be able to refinance.  I'm thinking they were talking about what you are talking about here.

Feb 02, 2013 11:16 AM
Rich Antonino
Black Rose Fishing Charters and CastNCrew Fishing Show - Plymouth, MA
Charter Captain and Fishing Show Producer

Christine, great question.  You're right...they don't have to.  However, the program was made available on the first of February, so we'll see what happens as we move cases through the process.  I will imagine that the willingness to subordinate the second will be based on the normal factors.A CLTV of 110% would be viewed differently than a CLTV of 200%, of course!.. I also imagine that there will be pressure to subordinate coming in there from the first lender.  Other morgtage companies will probably offer this, but it will depend on who their investors are.  Joetta, this would be for primary residences, not investment properties...

Feb 03, 2013 01:57 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thanks for sharing this information.  I hope you will be able to help many families with their much needed refinancing.

Have an outstanding week.  Be sure to have your camera in hand to capture the special moments.

Feb 03, 2013 10:15 PM