Short Sale Or Mortgage Refinance: Which Is The Best Underwater Mortgage Option For You?
Homeowners with an underwater mortgage have many options
. Two of the big ones are trying to obtain a mortgage refinance vs. selling the home in a short sale. Both have their advantages and disadvantages, which you need to carefully consider before making a decision about how to proceed.
In simple terms, refinancing your mortgage involves taking out a new loan to pay off your existing mortgage loan. Often, homeowners pursue a mortgage refinance when interest rates fall, since they'll be able to obtain a more affordable loan. Since current interest rates are relatively low, some underwater homeowners may be interested in pursuing a refinance in order to lower their monthly payments.
The problem, however, is that it can be difficult to refinance an