Homes Appraiser » Refinance

What Can I Expect During A Home Appraisal For A Refinance?

Rob — Wed, 11 Nov 2009 11:53:08 +0000

We’re refinancing the 1st on our house and having an appraisal done. What happens during this process? Should I do something to prepare for it?

I Am Paying Pmi On My Mortgage. If My Home Value Reaches 20% In Less Than A Year Can I Refinance Out Of Pmi?

Rob — Tue, 03 Nov 2009 12:58:01 +0000

I am a 1st time buyer / new home owner who hasn’t even made the first payment yet “Sept. 1st”. I have PMI on my mortgage that I would like to get rid of as soon as possible. Most lenders require a year or two as good payment history before you can drop PMI. I have no pre-pay penalty on my mortgage so if I refinance with another lender in less than a year when my value exceeds 20% (basically there already) will the new lender require that I have been in my home at least a year or two with good payment history?

Refinance Home Loans and the Home Value Question

Rob — Mon, 03 Aug 2009 12:15:20 +0000

Lower refinance home loan rates are raising the volume of applications but, will a potential refinance boom be offset by uncertain home values? Estimates for the fallout of refinance loan applications range from 50% to 65%, due in part from low appraised home values.Borrowers with substantial home equity and good credit may be the primary beneficiaries of low refinance rates, while many others could find themselves stuck in their current home loan, unable to refinance because of lower than expected home values. High expectations of home values can be reduced by the reality of appraisals, which determine market value by comparing similar properties recently sold and closed escrow. When a lender takes a refinance home loan application, the borrower provides an estimate of their home value, which may be just wishful thinking, considering market conditions. If any of the recent home sales within a neighborhood are from foreclosures or short sales where the banks have substantially cut the prices for a quicker sale, appraisers have no choice but to use those properties as comparable sales to determine the value of a home for a refinance loan.The mortgage industry is taking steps to ensure more reliable home valuations. Fannie Mae and Freddie Mac, the largest U.S. mortgage finance companies, have agreed to establish a home appraisal code to help prevent undue influence on appraisers, which has in the past led to artificially high home values, contributing to a record number of foreclosures.Also, in order to protect against potential loss, FHA has changed their lending guidelines to require that borrowers pay for two separate appraisals on cash out refinance home loans over 85% loan to value, using the lesser of the two values to calculate the maximum loan amount.Because home values are such an important issue when refinancing, lenders should offer to have the local comps checked, as a courtesy to borrowers prior to spending any appraisal money, since the borrower usually pays for the appraisal, just to make sure the value is close to what is needed in order to fund a refinance home loan.

Written by Rick Smith: Rates and information on home mortgages, additional information on refinance home loans
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Can You Use One Home Appraisal For Different Loan Companies To Refinance?

Rob — Wed, 15 Jul 2009 12:22:00 +0000

We paid for a home appraisal for another lender and now we want to check our options. Can we use the same appraisal we already paid for with other lenders?