I am a physician in practice in Massachusetts for 15 years, in a home for 5 years, looking to renovate and refinance, with total loan around 1.1M

Asked by Docfredh, Wellesley Hills, MA Sun Nov 28, 2010

Difficulty lies in the low appraisal leaves me with little equity

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15
Myra Gouger, Agent, Las Vegas, NV
Sun Nov 28, 2010
You might find that you will be better selling the home and buying a new one rather than renovating and refinancing. Speak with a professional and work it out both ways. Most people who are in a home for that long a period of time as you are find they are still making money on the resale of the home.
1 vote
Cecilia Hens…, Agent, Natick, MA
Wed Aug 17, 2011
Cecilia Hensel
Agent
Wellesley, MA
..BEST ANSWER
Docfredh
I think you should explore the financing options very carefully before you start the project. While anything is possible, today the mortgage and apraisal industries are very difficult to predict. I recommend you look into a construction loan that will convert into a conventional mortgage upon completion. You need to have a reputable builder with a track record to qualify for the construction loan. Ask your builder. He may have some financing recommendations. I have had success with Rockland Trust. Let me know if I can help you further.
0 votes
, ,
Thu Dec 2, 2010
You should be able to get a construction loan that will pay off your existing loan, and give you additional funds for the renovations. You will need to have some of your own money to put into this before you get disbursements. Then your loan-to-value will be based on the As Completed value of the home.
You may be able to get the kind of loan you want through Webster Bank, which is located in Connecticut. They no longer broker loans, but if you contact them directly they may be able to help you.
0 votes
Tom and Joan…, Agent, Boston, MA
Thu Dec 2, 2010
Doc Fred:

I am a Realtor in Weston. I would suggest going to a Portfolio lender which is usually a brick and mortar institution that does not sell their loans to the secondary mortgage market. Because of your work history in the area they might have a better ability to work with you. You might have to pay a slightly higher rate, but if it allows you to accomplish your goals then it will be money well spent. If you want to chat further, please feel free to contact me directly.
0 votes
Andrew Adams, , 01915
Tue Nov 30, 2010
Scott,

what if any Jumbo Renovation programs can you offer?
0 votes
Scott King, , Wellesley, MA
Tue Nov 30, 2010
Good Morning

I work for William Raveis Mortgage in Wellesley. The info you give above is really not enough to give
an answer that I think is usuful to you. I think that what you are saying is that the loan after your work
is done is $1,1m. I can help you w/ a refiance of your current balance, but I am not sure if that is what will
work for you. You can reach me @ scott.king@raveis.com if you would like to explore some options.

Thank You
Scott King
0 votes
Louis Wolfs…, Agent, Needham, MA
Mon Nov 29, 2010
fred wellesley and needham will do 20% equity
0 votes
, ,
Sun Nov 28, 2010
Hi Doc
I can finance loans up to 4 million. The major problem you will run into is equity.
You will need 40% of equity, after your new loan amount is implemented. So basically you are maxed out at a 60% Loan to Value.
Feel free to contact me.
Best of luck.
0 votes
Louis Wolfs…, Agent, Needham, MA
Sun Nov 28, 2010
Docfredh,

Andrew is right, the Wellesley Bank or may I suggest the Needham Bank, both are great to work with.

Louis Wolfson
Appraiser, Broker, Consultant

Representing Greater Boston's Finest Builders and Communities - Brookline, Dover, Needham, Newton, Wellesley and Weston
Web Reference:  http://www.LouisWolfson.net
0 votes
Myra Gouger, Agent, Las Vegas, NV
Sun Nov 28, 2010
Here is something else to also consider as well. Remodeling doesn't necessarily raise the value of your home. Adding an addition which you might spend $100,000 only gives you $30,000 extra value in the appraisal. Yes, the appraisers only allow 30% appreciation for an addition. Redoing your kitchen and your restrooms will add to your value, but only if everyone's home in the neighborhood is completely different. If every home is the same, you could find that you can spend $50,000 on a new kitchen, but your value is exactly the same as before. Adding a pool in Massachusetts may add absolutely no value to your appraisal. Repainting your rooms in a very "with it" beige color actually gives you value as it makes your home show very well which translates to a better price when someone makes an offer. I learned a long time ago that paint is the least expensive thing you can do to get the most bang for your buck. As I said below, price out your construction ideas and see if it isn't less expensive to get most of what you want by buying a new home.
0 votes
Andrew Adams, , 01915
Sun Nov 28, 2010
Karen the OP is looking for a Renovation/Construction loan your in house mortgage broker is unlikely to offer that type of product. I would suggest Contacting Wellesly bank 1st they have a really good equity construction program but the after Improved LTV could pose a problem.
0 votes
The Gormans:…, , Wellesley, MA
Sun Nov 28, 2010
Hi

I am a Wellesley broker, live in Wellesley and am currently going through the refinancing process. I highly recommend you contact Scott King (contact information below). The rate and terms he got me could not be beat by any other lender. Can't say enough good things about him and Raveis Mortgage. Feel free to call me if you have any questions. Karen (Cell: 339.222.8103)

Scott King
Executive Mortgage Banker
William Raveis Mortgage LLC
NMLS MLO ID #41665
Phone: 508-317-2927
Fax: 617-762-4046
0 votes
Karen Shaylor…, Agent, Sudbury, MA
Sun Nov 28, 2010
Try Middlesex Savings- they are terrific w/local loans and their jumbo rates were fantastic last week. My clients have had great success with Ann Barry, 781-249-8784.
0 votes
Andrew Adams, , 01915
Sun Nov 28, 2010
The question I would need the answer to to determine what is possible is how much of a loan are you looking for (including the payoff of the existing loan and the cost of repairs) and what would the after improved value of the property be?

Without that info there is not a whole lot of advice anyone will be able to provide.
0 votes
Scott A. Nel…, , 02155
Sun Nov 28, 2010
You should probably contact others in your pratice for the names of mortgage professionals they've worked with recently & been happy with. They can usually best service your needs & knowledge of your property type & local trends.


Hope that helps,
Web Reference:  http://www.MedfordHouse.com
0 votes
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