Financing in Maricopa>Question Details

Craig Johnson, Home Buyer in Chicago, IL

I bought a home last year in Maricopa for 120,000, and now want to refi to a 15 year mortgage, however the appraiser is coming in with a 105,000 value

Asked by Craig Johnson, Chicago, IL Tue Jul 26, 2011

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You can save the money of refinancing and just pay off your mortgage early by making additional payments to reduce your principal. One extra payment a year on a 30 year fixed mortgage reduces the loan to about 17years. Of course you will want to make sure that there are no penalties for early payoff.
0 votes Thank Flag Link Wed Jul 27, 2011
Do you have a FHA mortgage Craig? If you do, you can refinance under the streamline program. This program does not require an appraisal, just that your score is 640 or above and you have been paying your mortgage on time.
0 votes Thank Flag Link Wed Jul 27, 2011
Sorry to hear, but not too surprising from what I've heard about Arizona's property values.

Buying a home for $120k, refinancing and having it appraise for $105k isn't an issue unless you need a higher appraised value to refinance, which I suspect you do. But you are going to have to provide more details about your situation, hit "Answer this question" to add more information.

Do you live in the property? How much is owed on your mortgage? Does Fannie Mae or Freddie Mac own your mortgage? If so, they have a program for people who are underwater, but others can use it, and it's where you can refinance up to 125% of your home's value value so you can take advantage of today's better interest rates. The websites to check if Fannie or Freddie own your mortgage are http://www.fanniemae.com/loanlookup & http://www.freddiemac.com/mymortgage - your lender probably is aware of that program though, ask them, or if you are already doing that refinance program... what value do you need in order to refinance?

Regarding the value, are there any better comps out there that the appraiser didn't use? Did you and your loan officer go through the comps that were most likely to be picked, and determine that $120k would be a reasonable value? Or were you thinking the value would come in at something else? Did you not even review comps before? Is this appraisal not even part of a refinance and you just got one ahead of time to see what you could be dealing with?

Please explain your situation.
0 votes Thank Flag Link Wed Jul 27, 2011
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