If my house mortgage loan is higher than the house appraisal, can I get the loan amount lowered through a refinance or another option?
Question Details: I bought my house at $285,000 but its worth $205,000. Is there a way to lower the mortgage loan?
No, there is not. The loan is a contract: an agreement that in exchange for receiving a certain principal amount, you will repay that amount plus interest. If the other side (the lender) fulfilled their obligations (provided the money/loan), you are then contractually obligated to fulfill yours. Changes in home value do NOT affect the obligation: just as the mortgage amount would not go up if the home rose in value, so, too, does it not go down if the home turns out to be worth less than the loan.
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