A bit over a year ago, we refinanced our home, lowered our rates and paid off some of our other debt. We were conservative - financing less than 80% of the value of our home. We have NEVER taken one of the crazy risky loans. Every mortgage we have had for over 10 years has been a conventional regular old fashioned pay down the principle fixed rate loan. No sub-prime crap, no baloon payments, no 115% of value LOC, no 30-due-in-15 or any other tricky fancy loans. Just normal stuff.
This week, we decided to try and take advantage of the low interest rates, and save a couple percent. Additionally there are supposed to be some government benefits for loan companies to help people who are in good standing refinance that we were hoping to utilize.
We called to refinance our home, and found out this:
Our home value is too low to get any new loans. We still owe less than the home is theoretically worth - but now we are at about 98% loan to value ratio (down from about 78% in one year!). The only loan we can qualify for is a FHA loan. But FHA will only do 97% so we would either need to come up with several thousand dollars or hope a full appraisal would come back higher.
Another kicker is that the government programs don't help us. We are not eligible for the government benefits because we have a second mortgage.
So F U to all the banks out there, and F U to all the rich F'ing executives and F U to all the Wal-Street Arseholes and F U to all the bail outs, and F U to the government and FU to the Obama administration.
We F'ing make every payment on time, even paying a little extra every month - and we get a great big goose egg of assistance. We do everything right, everything responsible and by the book - and we get screwed.