Baffled by refinancing

[RobertL]

I purchased my house in 2002 for $174,000 with a VA loan. I currently owe about $126,000. I don't know if I am underwater at all. When I look at on-line estimates of the value of my house, I see estimates of around $100,000 to $110,000.

However, when I look at houses on my block that have sold, they have sold for considerably more than this. Also, we put in a new fence, a new roof and new siding, which should increase the value.

I don't want to pay hundreds of dollars for an appraisal only be told that I can't refinance, but I do want to get a lower rate, I am currently paying 7 1/8 percent.

I have looked into refinancing, but I don't understand it at all.

[NevadaHelp]

If your original loan is a VA loan then you should quilify for a VA Streamline refinance to reduce the interest rate irrepsective of the current value of the home. My experience has been that this is easy to accomplish. I would start by contacting your current servicer and telling then you want a VA Streamline Refinance.

[Erik Sandstrom]

Nevada is corect, a VA streamline would be perfect for your scenario. Limited documentation required, no appraisal and quick funding!