Refinancing my conventional mortgage w/ BA

[ken_gen2004]

I'd like to ask anybody from FHA if I can refinance my mortgage? Presently I have a conventional mortgage with Bank of America with outstanding balance of $310,000 @ 7.125% for 40 yrs (10yrs interest only and 30 principal+interest). I had talk to Bank of America and they turn me down on refinancing it because they said the value of my house is only $270,000 as of now. I bought this property in 2007 after Bank of America showed me the appraised value @ $330,000. So, is there a way that the government or FHA can help me refinance or modify my mortgage? I just wanted to change my term from 40yrs to 30 yrs fixed principal + interest with lowered interest rate.

Thank you very much

[dsemler]

You need to get them to reduce the principal of the loan. There is a product out there through FNMA and FHLMC but the cap is 105% LTV

https://www.efanniemae.com/sf/mha/mharefi/pdf/refinancefaqs.pdf Above 105% you are at risk to bail onthe loan and the lender should be interested in working with you.

You just need to keep hounding your current lender and threaten to walk away