Clients who bought their home in 2005 for $580,000 and saw the value drop to $350,000 have finally seen their neighbor this month sell for $600,000. Yes they now can refi their 0 down loan from 2005. They still have a 6.1% interest only loan, and have not paid extra; however, they had paid extra on the 2nd mortgage and built 5% equity.

So they will be able to switch over to principal and interest payment AND lower their monthly payment by $500 by combining the 2 loans. And yes, they are happy they did the 0 down because they have loved the home and couldn’t have saved money for a big down payment with 4 children. Now that their kids are 23, 21, and 10, they are planning to pay down their house to get ready for retirement.