clyons1974, Home Buyer in Phoenix, AZ

I'm trying to refinance my home. We had an appraisal, but now Freddie Mac is devaluing my home $13k less then the appraisal.

Asked by clyons1974, Phoenix, AZ Tue Mar 19, 2013

How is Freddie Mac coming up with the value for my home and what good is an appraisal? Am I able to go elsewhere and refinance without Freddie Mac? Our home appraised for $135k, Freddie Mac claims it's worth $122k and we owe $115k.

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Korene L. Cl…, Mortgage Broker Or Lender, Glendale, AZ
Tue Apr 2, 2013
Having done numerous HARP refinances, I would suggest you look at the overall costs and savings. I would be pleased to compare our service, fees, costs, etc, against anyone you wish to compare with us.

I have been in this industry for many years and have a team that are experienced and knowledgable to get your loan done and at a costs that is highly competitive.

I am a Mortgage Banker that lends in both Arizona and California where I will be pleased to help you. If you or someone you know is looking for financing options, please feel free to contact me or pass along my information. 623-340-0934 Korene Clopine-Seaman NMLS # 218520 We are Direct Lenders, WE CLOSE LOANS! You may hear more information on YOUR Source For Real Estate on Money Talk Radio 1510 AM each Saturday from 12:00 Noon until 1:00 PM
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Voices Member, , Phoenix, AZ
Mon Apr 1, 2013
before i answer, let me first say that an appraisal (by definition) simply means an opinion of value. so no two appraisers will come up with the same value. in saying that, another appraiser might ger you the value you need.

there are several ways a property gets appraised: a bpo, avm or appraisal. a bpo is a broker priced opinion, which is done by either realtors or third-party companies using tax records of sold homes to determine the value. usually a bpo costs about $150 more or less. an avm is an automated valuation model, which each servicer has to determine the property value. i don't know what values or methodoligies are used in the avm, that's behind closed doors. the third method is an actual appraisal, which can cost $300 to $400 bucks. a licensed appraiser will view the property, it's building integrity, sales of neighboring homes and other things to determine it's value. an appraiser's license is on the line so you can bet a lot of work has gone into it.

there are also different methods to appraise: using comps (neighboring homes sold); the rebuild value; or if commercial property, the amount of gross revenue generated.

if you want to refinance out of a freddie loan, you can. you can attempt an fha refi if you desire.
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BParker, CPA*, , Scottsdale, AZ
Wed Mar 20, 2013
Hi CLyons:

As indicated previously, based on your home value and amount owed, it would only make sense for it to be a HARP 2.0 loan, assuming the current loan is owned by Fannie Mae or Freddie Mac.

Your statement that you have "gone from $2,100 in closing fees ON A GFE to nearly $4,000" suggests your current broker is in violation of current rules and regulations, which do not allow their fees to change once a GFE is issued, unless you have changed the terms of the loan. If you have the original GFE and a new one showing different fees, I would suggest you contact the Arizona Department of Financial Institutions, which is in charge of enforcing these regulations.

Good luck. Let me know if my team can help you in this matter.

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clyons1974, Home Buyer, Phoenix, AZ
Wed Mar 20, 2013
Thank you all for your information, this whole process is so different then 10 years ago when we 1st purchased. I believe that it is a HARP II loan, which were unaware that it would be until we pressed our broker further.
I'm thinking at this point that we will be getting a 2nd opinion because our current broker's #'s keep changing. We've gone from $2100 in closing fees on a GFE to nearly $4000.

Thank you all again.
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Flag Wed Mar 20, 2013
Dave Jackson, Mortgage Broker Or Lender, Phoenix, AZ
Tue Mar 19, 2013
Freddie Mac (Fannie Mae as well) will establish a home's value based on statistical data that has been collected over the last 15 or 20 years from past appraisals and market data. This data is changed as the market changes and is not designed for absolute accuracy, especially in a faster moving market like what is happening in Maricopa county.

If this is a HARP II refinance and no appraisal is required getting an appraisal is an optional event. If you can use that appraisal depends on the bank and underwriting overlays. In this type of loan the difference between the values is not considered because it is all about the previous loan. If the previous loan does not have MI the new HARP loan will not have MI either.

If this is a conventional conforming refinance an appraisal would be required and the appraised value would take priority.

You are always able to go to elsewhere. However if it is a HARP II refinance that value established by Freddie Mac stays with your home for some months.

Dave Jackson
Loan Officer/Real Estate Asset Planner
Financing Solutions for Arizona Real Estate since 1993 American Financial Lending, Inc.
20860 N. Tatum Blvd, Suite 160
Phoenix, AZ 85050-4277
602 277-3800 w
602 631-9788 f
602 524-2401 c
602 912-9438 h
BK # 0910057 NMLS LO ID # 284875
0 votes
BParker, CPA*, , Scottsdale, AZ
Tue Mar 19, 2013
Hi CLyons:

The fact Freddie Mac is getting involved upfront with the value of your home tells me you might be involved in a HARP 2.0 loan refinance.

If this is the case, I do not know why you had an appraisal done, and the fact Freddie is saying it is a different value should not have any real impact on the transaction...

Before going into too much detail, can you let us know if it is a HARP 2.0 refinance or not?

Take care. Bill.
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Jennie Miller…, Agent, Phoenix, AZ
Tue Mar 19, 2013
You will want to speak to another lender to get a second opinion.
0 votes
Doug McVinua, Agent, Gilbert, AZ
Tue Mar 19, 2013
I would be glad to assist with recommending a couple of local lenders that will be able to shoot straight and tell you what is going on and what could be done.
0 votes
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