Posted on: 14th Jul, 2010 05:18 pm
1. i just discovered, by a process of refinancing, that my home appraised for 125,000 today. i owe 121,000 22 years left. my home appraised for 163000 in 2001. my interest rate is 6.5%. the refinance is 4.5 % for 15 years and i have been approved with a fha loan but will have pmi and only if i bring 2400.00 to the table, due to no equity. please can someone help,
2. please advise i am in shock for lost home value, but the cost to replace my home according to the insurance company is 200k another dilema?
3.i pay taxes on home value 143600. city tax indicates banks appraisal does not count. i am so confused with this system and feel like i want to just quit it all.
2. please advise i am in shock for lost home value, but the cost to replace my home according to the insurance company is 200k another dilema?
3.i pay taxes on home value 143600. city tax indicates banks appraisal does not count. i am so confused with this system and feel like i want to just quit it all.
If your mortgage is owned by Fannie Mae or Freddie Mac you may have the option to refinance into the Making Home Affordable programs.
Has your lender discussed these as possibilities?
http://makinghomeaffordable.gov/ is where you would want to start.
http://www.fanniemae.com/loanlookup/ is where you check to see if Fannie Mae owns your mortgage.
http://www.freddiemac.com/mymortgage/ is where you check to see if Freddie Mac owns your mortgage.
If you do not pay mortgage insurance right now then with the Making Home Affordable refinance programs you shouldn't have to pay mortgage insurance on the new mortgage either.
Just because your home value has gone down doesn't mean it'll cost less to replace the home if it is damaged. You should still consult your insurance agent and inquire if there is any possibility to reduce your coverage, most lenders just require you have coverage to meet the loan amount.
The city/county uses an assessed value, not an appraised value, to determine how much your property taxes are. If you feel that your home is overassessed then your city/county may have a value appeals process that you can look into.
Let us know if you have further questions.
Has your lender discussed these as possibilities?
http://makinghomeaffordable.gov/ is where you would want to start.
http://www.fanniemae.com/loanlookup/ is where you check to see if Fannie Mae owns your mortgage.
http://www.freddiemac.com/mymortgage/ is where you check to see if Freddie Mac owns your mortgage.
If you do not pay mortgage insurance right now then with the Making Home Affordable refinance programs you shouldn't have to pay mortgage insurance on the new mortgage either.
Just because your home value has gone down doesn't mean it'll cost less to replace the home if it is damaged. You should still consult your insurance agent and inquire if there is any possibility to reduce your coverage, most lenders just require you have coverage to meet the loan amount.
The city/county uses an assessed value, not an appraised value, to determine how much your property taxes are. If you feel that your home is overassessed then your city/county may have a value appeals process that you can look into.
Let us know if you have further questions.
Hi fvoom!
Welcome to forums!
I can understand that you're in a shock due to the loss of the property value. But you should note that property values have reduced in most part of the country and your case is no exception to it. If you wish to refinance the loan, then you'll have to go for a PMI or pay the required amount to the lender. You can speak to the other lenders to find out whether or not they would require a PMI in your case. However, as far as I can understand most of the lenders will ask you to go for a PMI.
If you plan to replace the home, then you'll have to pay the required sum of money. There's hardly anything that could be done in this case. As far as I know, the tax appraisal is done in order to calculate the property taxes. It is different from the property appraisal which actually deals with the property value.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I can understand that you're in a shock due to the loss of the property value. But you should note that property values have reduced in most part of the country and your case is no exception to it. If you wish to refinance the loan, then you'll have to go for a PMI or pay the required amount to the lender. You can speak to the other lenders to find out whether or not they would require a PMI in your case. However, as far as I can understand most of the lenders will ask you to go for a PMI.
If you plan to replace the home, then you'll have to pay the required sum of money. There's hardly anything that could be done in this case. As far as I know, the tax appraisal is done in order to calculate the property taxes. It is different from the property appraisal which actually deals with the property value.
Feel free to ask if you've further queries.
Sussane
Tax assessments are done at a particular point in time, and they're not subject to fluctuations as market values are. Certainly it appears that their assessment was done quite a while before values in general began to fall. That's not the least bit surprising, and it would be equally un-surprising to find that the tax assessor in your locale won't be willing to budge if and when you request a reassessment.
As for replacement cost as determined by insurance companies, their calculation is based on what it would cost in today's dollars to replicate your home. The cost of materials has increased despite the losses in value of homes across the country.
I think you need to bite the bullet here in order to obtain a more favorable interest rate.
As for replacement cost as determined by insurance companies, their calculation is based on what it would cost in today's dollars to replicate your home. The cost of materials has increased despite the losses in value of homes across the country.
I think you need to bite the bullet here in order to obtain a more favorable interest rate.
