What are you basing that LTV on? We put 5% down on our place last July or so and got a rate a little lower than yours. We recently refinanced and the appraisal came out to 80% LTV. My point is, check your comps, not every market is horrible.
But yeah, we didn't expect that appraisal to come back that way. We were expecting to refi based on 95% LTV and even more conservative lenders like USBank were more than happy to talk to us. From what a broker acquaintance of mine says, there is still 5% money out there.
I should mention, the lead time to refinance is awful right now. We started our application in March (and I made the lucky decision to lock at the time of the application, at under 5%) and we actually closed in late July.
I'd suggest calling USBank. When we did it, they were only taking current customers, but the backlog was huge. Things might have changed. Try Wells Fargo as well. Places like PenFed are probably not going to go for it, as they stopped doing 95% LTV loans well before shit hit the fan. Worst case, you might be able to take advantage of something under the new programs to refi into an FHA. The rates are competitive, and most lenders are doing them because they don't bear the risk.
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