With home prices plunging in the past several years, many homeowners owe more on their mortgages than their houses are worth. Those who are underwater and looking to ditch the scuba gear to rise to the surface once again have several choices at their disposal.
Credit.com is two parts into a six-part series about options for underwater homeowners. The first two moves outlined are the most basic:
*Stay and pay. Just keep your head down and make your mortgage payments as usual. It’s the simplest and most convenient option, but financially questionable if your mortgage payment far exceeds what you’d pay for rent.
*Refinance. Sub-5 percent interest rates are widely available for those with solid credit, and the Home Affordable Refinance Program, which was extended through June 2012, is another option.
If you’re underwater on your mortgage, how are you dealing with your finances?
Underwater On Your Home? Your Six Options [Credit.com]