Posted on: 25th Nov, 2013 12:37 am
Hello there... I am planning to refinance my mortgage. If the appraisal of my property come lower that what I have expected, how will it impact my refinance?
Hi Guest,
If the appraisal of the property came lower, then your chances of getting a mortgage refinance will get reduced.
Take care
If the appraisal of the property came lower, then your chances of getting a mortgage refinance will get reduced.
Take care
Hi Guest!
Welcome to the forums!
I agree with what Sara has said. If the appraisal comes low, then refinancing the loan will be quite difficult. In that case, you will have to wait till you build up equity in the property.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
I agree with what Sara has said. If the appraisal comes low, then refinancing the loan will be quite difficult. In that case, you will have to wait till you build up equity in the property.
Feel free to ask if you've further queries.
Sussane
Ideally, you want your appraised value to be high enough so that the new mortgage is 80% or less than the value so that private mortgage insurance is not required if you are doing a conventional loan, which should be your first choice in a new loan.
If the new loan is 81% to 95% of the appraised value, you will be required to have private mortgage insurance.
If the new loan is over 95% to 97.75, your only option may be an FHA mortgage.
If the new mortgage is over 97.75% of the appraised value, you may only be able to refinance under the Home Affordable Refinance Program (HARP) if your existing loan is owned by Fannie Mae or Freddie Mac and it was closed before June 1, 2009.
If the new loan is 81% to 95% of the appraised value, you will be required to have private mortgage insurance.
If the new loan is over 95% to 97.75, your only option may be an FHA mortgage.
If the new mortgage is over 97.75% of the appraised value, you may only be able to refinance under the Home Affordable Refinance Program (HARP) if your existing loan is owned by Fannie Mae or Freddie Mac and it was closed before June 1, 2009.
