Financing in 90019>Question Details

miklovic.3, Home Owner in 45872

If I locked into an interest rate for a cash-out re-finance, and my appraisal came back too low, am I able to change my loan to avoid PMI

Asked by miklovic.3, 45872 Wed Sep 26, 2012

and also take advantage of LOWER interest rates?

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Yes can change terms based on appraisal amount. To avoid PMI LTV has to be 80% or below.
Gail Mercedes Cole
EXP Realty
0 votes Thank Flag Link Wed Jun 12, 2013
We'd essentially be able to take almost no cash out, so I'd rather change the loan altogether and take advantage of the rates that have dropped after we originallyy locked in... wasn't sure if they we'd be able to get out of locked rate or not
0 votes Thank Flag Link Wed Sep 26, 2012
Ask a really good broker! Call the one I refer a lot if my clients to.
0 votes Thank Flag Link Wed Sep 26, 2012
Not an issue, since this is a cash-out refinance they can just drop the loan amount to 80% of value to avoid PMI (assuming it will still be a cash-out refinance with the new lower loan amount of course). Don't have to start all over. Case like this would be a change of circumstance and you'll get a new GFE emailed, etc... no biggie.

Regarding lower rates, talk to your loan officer about it...some can and some can't change rates...depends on the lender/investor. I can lower rates, sometimes free and sometimes for a small fee...depends on market conditions. Policy is in place so that we don't lose customers when market drops.

Hope that helps.

Mike Pandazos
Loan Officer
0 votes Thank Flag Link Wed Sep 26, 2012
Typically yes, however, sometimes the lender has to "re-write" the loan due to the change and you have to start all over again. It depends on your lender.
0 votes Thank Flag Link Wed Sep 26, 2012
Yes, tell your lender to submit a "change of circumstance" and lower your loan amount.

Valli Lopez
619.916.9595 direct
0 votes Thank Flag Link Wed Sep 26, 2012
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