Can I refinance my home loan if the the value of the home has gone down over the last year?

I want to refinance my home loan to get a better rate. I purchased the home 1 year ago and currently have a 30 year fixed at 7.0%. I bought the house for 475,000 an currenty owe 423,000. I worried that the home prices have droped so low in my area because of foreclosures that they won't let me refinance. Also, do you have to get an appraisal on your house before you can refi? Thanks

Call your current lender and see what they can do for you. If you are a good client they may offer you a deal you can't refuse.

To refinance you will need a new appraisal and you may or may not have enough equity. However try your current lender before you do anything.

Yes, a refinance will require an updated appraisal. You may be able to refinance at a 100% LTV ratio, as long as the house appraises for at least $423,000. It's getting dicey to refinance because of valuation drops as you mention. And the low priced foreclosure sales in the databases used by appraisers isn't helping matters either.

I need to refinance because I was in a adjustable rate mortgage and the rate adjusted but the problem I was having was that my mid score was a 560 and no one would finance me, my brother inlaw told me about this guy Joseph Heinze, how he was a government sponsored lender and how he specialized in those kind of loans. So I gave him a call and long story short not only did he close my loan I got all my debt consolidated and a 6.75% 30 year fixed, I could not believe it. His toll free number is 1-866-830-2338 ext. 3093 . He is a very pleasant guy to work with also. Give him a call and see what he can do for you.