Q. After I relocated to California nearly 4 years ago I refinanced my house in Colorado in anticipation of selling it the following year once my entire family had moved out west. I tried to sell the house for over a year and ended up making it a rental. Now my home in Colorado 
has been a rental for over 2 years. I went to my current mortgage lender and tried to refinance but the rate they were offering for the investment property is high. I was wondering if there was a way for me to reduce my monthly payments on that mortgage. My salary is $125,000 and my FICO is 750 but I feel like I’m locked into this bad loan with no possibility of refinancing. Any suggestions?
A. It was recently estimated that nearly 20% of homes in America are underwater and that number is much higher in markets where selling is even more difficult. The problem with your property has to do with the fact that it’s a non-owner occupied property. Fannie Mae and Freddie Mac add 1.75 points as a pricing hit to loans on properties such as yours and that applies to all lenders. This rule alone will probably make the cost of refinancing out-weight the benefits. On a positive note the COF index is 2.003 meaning that your interest rate should be in the mid 4% range. Hang in there this economic situation will not last forever.
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