Can you Refinance a Home worth less than mortgage

[Likethis2]

I am on a 2 year fixed and my house payment is going to go up 300.00 dollars at least at the end of the 2 years which is in March 08. The value of my home has gone down since my refin so my loan is more than the house is worth. Is there away to refin for lower payments or am I just stuck? Help!!!

[Ethel]

I take it you are in America or Canada, and this is mainly a UK site.

Speak to your lender first and foremost. You don't know what offers they may have to tempt you to stay with them and borrow yet more money.

[chitchat]

You could ask your lender to increase the term of the loan which would reduce your monthly payments. I am assuming that you are making capital and interest payments at the moment. You could also ask if they would consider interest only payments for a while. But if you use the latter option be aware that you are only paying interest and none of the captial.