Thank you John Weeks. That helped.

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In article <GfFyj.121$GW5.43[at]newsfe12.phx> ,
"Elle" <honda.lioness[at]spamnocox.net> wrote:

- quote -

You will not likely get a conforming 1st mortgage in this case.
But you might get an 80% 1st for $224,000, and then a H/E loan
for the remaining $76,000. H/E loans can go beyond the 100%
equity value up to 125%, which would be $375 in your case. The
interest rate on the H/E is not going to be great, but the first
mortgage should be OK, maybe a point or two above market for not
having equity.

-john-

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Pardon what may be a naive question: $300k is the principal
remaining on a house mortgage. The house's appraised value
is currently $280k. Is it even possible for the house owner
to refinance the original $300k at a different rate of
interest?

I thought I read in the paper today that lenders do not refi
when the appraised value is less than what is owed. Granted
the bank's collateral stinks (the house is worth less than
the loan amount). OTOH, it gets to loan out (for points and
interest) a higher amount. Again, pardon any naivete here. I
want to understand just how strapped some folks may be.

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