Can I Refinance With Less Than 20% Equity? | Personal Finance
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Can I Refinance With Less Than 20% Equity?

To refinance at the best rate and payment, lenders want to see
homeowners with at least 20 percent equity in their properties based
on their current loan balances. Despite this desire, it might be
possible to refinance with less equity to get a new mortgage with a
better interest rate and lower payments. Low Equity PossibilitiesTo
refinance a mortgage with less than 20 percent equity, the homeowner
usually must buy private mortgage insurance to protect the lender
against a loss on the loan. The decline in home prices after 2006 made
it more difficult to refinance homes with low equity. However, the
Home Affordable Refinance Program (HARP), passed by the federal
government in 2008, encoura