If your loan is ineligible for the HARP 2 refinance program, you do have options. If you live in Sonoma County, or Santa Rosa or a the surrounding areas, you can refinance your loan for up to 97% of the current appraised value. You be looking most likely using a government loan which has a maximum loan to value thresholds in the industry. Doing so would mean monthly mortgage insurance, but the interest rate savings, in most cases offsets the monthly mortgage insurance cost. Additionally, you could always pay down your principal balance to 80% loan to value 20% equity which would give you a combination of the best possible interest rate coupled with no monthly mortgage insurance. The funds used to pay down the principal balance would need to be sourced the money gifted, see this link on gift funds. The other solution is to simply write a check to your current mortgage servicer ( company collecting your monthly payment), have that company post the new principal balance and then have the lender you’re using for your refinance order updated payoff demand.