I bought a townhouse 1 year ago and got in one of these silly ARM loans. I am right now talking to a loan officer about refinancing. He pulled up my credit and my value and it is 200,000. I owe 220k. but fortunally i was able save 20k this year. My question is that i notice other units are up for sale for 190k. I told my loan officer and he said i should not worry it probally appraise for 205 ect. What is involved in this process, i really want to get in to a fixed program. The loan officer already told me i quilfied with credit and income.
2006-12-14 16:00:39 · 5 answers · asked by amy c 1 in Business & Finance ➔ Renting & Real Estate
I'm not sure when I bought my home it was appraised for $120,000.00 & I'm going for a fixed rate after 2yrs it just got reappraised & it's now $185,000.00 they pay off your old loan & you get a new one to start fresh wow another 30yrs instead of 28yrs lol.
2006-12-14 16:06:45 · answer #1 · answered by sugarbdp1 6 · 0⤊ 0⤋
An appraiser will go by the most recent sales withing your development and that are similar in size (10-15% +/-) to determine the value estimate on your property.
It does not appear that will be a problem in your case, but I would make sure to read the estimate of closing costs / agreement to identify if you are paying percentage points anywhere in the process. Keep in mind that 1 point will charge you 1% of your loan. A $400,000 loan might cost you 1.5 on the front and 1 in the back, that would be a killing $10,000 fee to whomever is funding the loan. Don't get ripped off, shop around.
2006-12-15 16:37:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If my understanding is correct they will look at recent sales and compare them to the size of your townhouse as far as number of bedrooms, baths and square footage. You can go to www.zillow.com enter your address and recent sales of homes in your area will come up on a map. You can find one that is comparable to yours take what it sold for which is hopefully more then what you paid for your home.
If you have done any improvements you want to make sure the appraiser knows what you have done. Baths, kitchens, windows, new heaters, water tanks, air conditioning all help with an appraisal.
Just in case you didn't know they did not raise interest rates so your fixed rate should be good depending on your credit.
2006-12-14 16:24:40 · answer #3 · answered by Yazzy 1 · 0⤊ 0⤋
An appraiser comes out and checks your home for the current market value, it does not take long and is worth having done to refinance your town home at a fixed interest rate. Since you are all ready approved with credit and income, then the appraisal should be a breeze. Best wishes.
2006-12-14 16:20:48 · answer #4 · answered by Janice 10 7 · 0⤊ 0⤋
Hey ..
If your loan officer is a bit more hardworking then the credit won't be a problem for refinancing or for getting a new mortgage .Ask you rofficer what rate he is providing you and if it isworse than 5-6 % then write to me at kishaloy_bhowmick@yahoo.com ,will provide u a better deal...
regards.
kish
2006-12-14 16:07:40 · answer #5 · answered by kishaloy_bhowmick 2 · 0⤊ 0⤋