Refinance Appraisal – Will this Step Hurt My Chance to Refinance?
Posted: April 21st, 2009 | Author: admin | Filed under: Refinance Appraisal | Tags: applying for a mortgage, appraisal value, closing costs | 9 Comments »
President Obama has worked very hard in his attempt to put a bottom in the housing market. The Making Home Affordable Plan was created partly to help current homeowners refinance at a lower rate which would put more money in their pockets in the long run. The biggest problem that this plan has seen in it’s early stages is the fact that the refinance appraisal step is killing home owners chance to refinance.
Many homeowners have not have an appraisal done in the last two months. Most of you may be thinking that the value of your home cannot go down that much in two months: think again! You home’s value could decrease over 20% in two months if there have been foreclosures or short sells in the neighborhood in which you reside. If you truly believe that there have been no foreclosures or short sells than it is likely your home is close to its recent appraisal value, but you never know!
When applying for a mortgager refinance, you MUST get through the refinance appraisal step before being considered for a lower mortgage rate. It is extremely difficult to get through this step if your home has greatly decreased in value and you have owned it for less than a year. If your loan-to-value (LTV) ration is anywhere above 95% mortgage lenders are not willing to give you that refinance rate of 5% or below. If you are able to obtain that rate with a high LTV you are likely to pay quite a large sum in closing costs.
I would encourage you to be honest with yourself and realize that your home may not be worth the value you think it is. I would also suggest getting an accurate appraisal value before applying for a mortgage refinance. In the end, you never know what mortgage refinance rate you will get until you try.
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[...] few friends that are trying to get through the mortgage application process and they said that the refinance appraisal is coming in MUCH lower than they expected. Is this happening anywhere else in the country? I [...]
Thanks for a great post..i cannot agree with this anymore!
[...] Refinance Appraisal – Will this Step Hurt My Chance to Refinance? [...]
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[...] Blogger offers information on getting a refinance appraisal and how it can affect your chance to get a low rate refinance. The Obama Administration is trying [...]
[...] Refinance Appraisal – Will this Step Hurt My Chance to Refinance? [...]
[...] Blogger offers information on getting a refinance appraisal and how it can affect your chance to get a low rate refinance. The Obama Administration is trying [...]
[...] Blogger offers information on getting a refinance appraisal and how it can affect your chance to get a low rate refinance. The Obama Administration is trying [...]