Financing in West Orange>Question Details

KB, Real Estate Pro in West Orange, NJ

West Orange Home appraisal

Asked by KB, West Orange, NJ Thu Jun 2, 2011

I purchased a home in WO in 2007 and as we all know the prices have dropped drastically since then. I refinanced in 2009 and had to put down a LOT of money to be able to refinance.

Currently i have a 5% 30yr fixed loan and i see that the current mortgage rates are pretty low (2.75% 0 points for 5/1 ARM) I am interested in locking for that rate but i cant afford to put down a lot of money. With this in mind my questions are:

1) Before i go into the refinance process is there a way i can find out what the approximate current value of my house is so i can do the math and see if this re-finance is worth it for me or not. I know i can hire an independent appraiser, but dont wan to pay a lot of money for an appraisal
2) Since i dont want to pay down, I would have to either go for a 2nd mortgage or PMI. Which of the 2 is a better option?

Any suggestions appreciated..
THanks
Kavita

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Answers

7
Sharon Avram & Karen Abramson’s answer
Kavita,

A CMA does not cost you anything. If you need our assistance, please reach out to our email so we can find a good time to see the house and get to work on the CMA for you.

Best wishes,
Karen Abramson
sharonandkaren@kw.com
917.294.0356
1 vote Thank Flag Link Thu Jun 2, 2011
Hi again Kavita! Hope all is well!

Feel free to reach out to me - I will be happy to help you.
Regards,
Debbie Rose
Prudential NJ Properties
1 vote Thank Flag Link Thu Jun 2, 2011
Hi Kavita,

West Orange just went through a town revaluation. If you know what that new value that was given to your home, that should give you a close indication of the home's value. Otherwise you can have someone do a CMA for you to see what the value is.

My partner and I work with Keller Williams in Livingston and would love to assist if you need it. As to the decision between the two options you have mentioned - contact a great mortgage consultant for a professional advise.

Good luck and let us know if we can be of further asssistance.

Sincerely,

Karen Abramson
917.294.0356
sharonandkaren@kw.com
1 vote Thank Flag Link Thu Jun 2, 2011
Your real estate agent who helped you buy should be able to create a Comparative Market Analysis which is a very helpful valuation analysis, as it'll use a lot of the same comparable sales that an appraisal would. Equally as important, it's free.

I am not aware of any 2nd mortgage lenders going over 80% combined loan to value in NJ, there could be from local community or state chartered banks, but in large the lending industry hasn't felt NJ prices have fully stabilized or are increasing, so until then it's going to be tough to find 2nd mortgage options over 80%.

PMI has become much more affordable in the past few years, back in 2009 the PMI rates were a bit higher than they are now. PMI has different options, the most common is the traditional monthly amount you pay, but you can also take a slightly higher rate in lieu of not paying any monthly PMI or take the same rate and pay an upfront amount of mortgage insurance instead of the monthly form. The rate that PMI is charged depends on the loan-to-value as well as your FICO score.
1 vote Thank Flag Link Thu Jun 2, 2011
Hi Kavita,
The best thing for you to do is to ask a local realtor for a CMA. A "Comparative Market Analysis". This should utilize the same comparable sales that an appraiser would use. More specifically the comps used should be of the same style and size house, most recent sales within the last 6 months, and closest to your home. Once you have that, then you can determine if a second mortgage or PMI is even needed.
1 vote Thank Flag Link Thu Jun 2, 2011
Yes equity lines are available over 80% LTV. But I would still want to know what a realtor believes your house is worth first to see if you qualify for the equity line if necessary. We are a bank and not a broker, that is why we can go over 80%. Let me know once you receive an accurate CMA.
0 votes Thank Flag Link Thu Jun 2, 2011
All, Thanks a lot for taking the time to read and respond to my question. I really appreciate it. I just spoke to the guy that gave me the rate quote and it looks ilke 2nd mortagage is not an option any more.

How much will it cost to get a "CMA" for my house? And do i just contact any realtor for that? I am no longer in touch with the realtor that i use to buy this home (not sure if she still has her license)

Regards,
Kavita
0 votes Thank Flag Link Thu Jun 2, 2011
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