Can I refinance my mortgage if I am underwater on my loan?

Yes, it is possible to refinance your mortgage even if you are underwater on your loan. The Federal Housing Finance Agency (FHFA) offers programs like the Home Affordable Refinance Program (HARP) and the High LTV Refinance Option (HLRO) for eligible borrowers. These programs are specifically designed to help homeowners who owe more on their mortgage than the value of their property. By refinancing through these programs, borrowers can take advantage of historically low-interest rates, potentially lower their monthly payments, and improve their financial situation. However, certain eligibility criteria apply, including having a loan owned or guaranteed by Fannie Mae or Freddie Mac, being current on your mortgage payments, and meeting debt-to-income requirements. It is recommended to consult with a mortgage lender or housing counselor to explore refinancing options and determine eligibility.