Njday, Home Owner in West Valley City, UT

Our mortgage is at 6% and want to refi. Our home is 5 years old and we're worried about the value with the market. Does the appraiser look at?

Asked by Njday, West Valley City, UT Sat Jan 7, 2012

this? We only want to refinance and do not want cash out. We qualify for a VA loan.

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Sinec you're in a VA loan now (It appears as that's what you're telling us), you can do a VA IRRRL loan (streamline refinance like FHA's streamline refinance). If you've had no late payments (30 day late payments) in the past year you should be good to go. If you've had one, you can still do it but your options will be limited (a lot of lenders require no late payments).

Depending on your current servicer, a lender may or may not require any type of appraisal be done.

The end result, you'll be able to refinance into current market rates. You shold make a call sooner than later because rates will increase slightly starting any day now due to the tax cut congress passed that essentially makes mortgages more expensive (by roughly 0.125% in rate) which means your potential savings is slightly less.
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1 vote Thank Flag Link Tue Jan 10, 2012
The appraiser figures out what your home is currently worth. If your house is underwater and not a FHA then wait until the regulations are firmed up under the HARP ll program. Theis program will allow you to refinance a property that is underwater.
0 votes Thank Flag Link Sun Jan 8, 2012
We most certainly will require an appraisal to be performed when doing a refinance and as Dave mentioned, there are many programs available today for homeowners that are underwater.

Step one is to determine what type of loan you have currently. From that point we are able to discover what programs and options are available to you to fit your needs.
0 votes Thank Flag Link Sat Jan 7, 2012
Great question. It depends on your current loan. There are many options out there, even if you are upside down on you home, that will allow you to refinance to a much lower rate. With a FHA or VA loan you will be able to do a streamline, which can be done without an appraisal. If your current loan is a Conventional loan, and owned by Fannie Mae or Freddie Mac, you may be eligible for the Home Affordable Refinance Program (HARP). Many times people do not realize that their loan is owned by Fannie or Freddie because it is being serviced by another bank, such as Wells Fargo. I can easily help you look up your loan to see if it in fact owned by them if it is a Conventional loan.

Give me a call and we can discuss what options may be available for you.

Thanks,

David Bath
W.J. Bradley Mortgage Capital, LLC
801-432-0218
0 votes Thank Flag Link Sat Jan 7, 2012
A bank most likely will require an appraisal. There are different degrees of appraisals depending on what the bank will want. Most often on a refinance a bank has the appraiser do what is refered to as a "drive by" appraisal. That basically means the appraiser will do research on your home and the sorounding sold homes that are comparable. Then rather then go to your house and look at the inside they will give an estimate on what they can see from the outside looking in. The appraiser is only there to show what the approximate market value of the home would be. Then the bank takes that value and decides what they will do for you. I hope this helps. Also before you refinance look into amortization of loans and look at how much interest you have already paid over the last five years. Remember although you can drop you percentage of interest your amortization will start over again. It may not be beneficial to you to refinance. I hope this helps
0 votes Thank Flag Link Sat Jan 7, 2012
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