Refinance

[Mike]

I have a home with a loan balance of 336k. Home is worth about 355. My rate is 9.625. I have had this loan for over a year and it is through Chase. Can I refinance this loan to a lower rate or an interest only product? I am also eligible for a VA loan. This property was originally purchased with the VA loan program, however when Chase refinanced it they did not go that route.

[mariya08]

The refinancing of a mortgage by a lender for a borrower currently in default on his or her payments. This is done to avoid foreclosure. Typically, the new loan amount is less than the existing outstanding loan amount and the difference is typically forgiven by the lender. A lender might do this because it is more cost effective than foreclosure proceedings.