Posted on: 06th Feb, 2008 08:53 pm
hello everyone,
i currently have 2 loans (80/20) my 80% loan just got adjusted this month. i was in the process of refinancing my house with suntrust bank just last month. i actually was getting a pretty good deal, a 30 year fixed rate conventional loan at 5.75% with no points with the option to buy out the pmi for .0875 of a point. unfortunately, the appraisal came back too low and suntrust will no longer refinance my property.
they did offer me to refinance the first loan based on the total amount i can borrow, but i just don't like the idea of keeping the 2nd loan, especially when i am about to spend more about 8k in closing costs, not too mention this 20% loan is interest only.
my property has lost about 20% of its value. i have excellent credit, 780 credit score, and i've never been late in any of my mortgage payments, and i still can't refinance my house.
is there anything that i can do about my situation? i was talking to some lenders and they mentioned something about some banks not requiring an appraisal to refinance your house. is this even true? if so, could you provide me any names that i could call?
thanks for listening.
victor
i currently have 2 loans (80/20) my 80% loan just got adjusted this month. i was in the process of refinancing my house with suntrust bank just last month. i actually was getting a pretty good deal, a 30 year fixed rate conventional loan at 5.75% with no points with the option to buy out the pmi for .0875 of a point. unfortunately, the appraisal came back too low and suntrust will no longer refinance my property.
they did offer me to refinance the first loan based on the total amount i can borrow, but i just don't like the idea of keeping the 2nd loan, especially when i am about to spend more about 8k in closing costs, not too mention this 20% loan is interest only.
my property has lost about 20% of its value. i have excellent credit, 780 credit score, and i've never been late in any of my mortgage payments, and i still can't refinance my house.
is there anything that i can do about my situation? i was talking to some lenders and they mentioned something about some banks not requiring an appraisal to refinance your house. is this even true? if so, could you provide me any names that i could call?
thanks for listening.
victor
I think you should get the appraisal verified by appointing your own appraiser.
Hi Victor,
Welcome to forums.
There are some lenders who waive the appraisal even if you are about to take a mortgage. These are mostly Fannie Mae approved lenders who evaluate the propery value with the help of their underwriting system and offer purchase money loans up to 70-75% of the property value.
However, yours is a case of refinance wherein such lenders would require a certain fee in order to eliminate the appraisal. Earlier this fee was $50. You need to check this out with lenders who offer such options.
Thanks
Welcome to forums.
There are some lenders who waive the appraisal even if you are about to take a mortgage. These are mostly Fannie Mae approved lenders who evaluate the propery value with the help of their underwriting system and offer purchase money loans up to 70-75% of the property value.
However, yours is a case of refinance wherein such lenders would require a certain fee in order to eliminate the appraisal. Earlier this fee was $50. You need to check this out with lenders who offer such options.
Thanks
victor, what you are referring to is called a "property inspection waiver." what is entailed is that with conforming loans (fannie mae) run through the automated underwriting system (desktop underwriter), there are models built in to the system that evaluate property addresses. if it is found that your particular property is sufficiently valuable so that the model allows for the waiver ("piw" in underwriting parlance), then you are charged $50 as noted above and there is no appraisal.
it would appear, from what i am seeing in your post, that your property would not qualify in this situation. in a declining value market, piw's are not going to happen - simple as that.
as for the suggestion that you hire your own appraiser, might i add this, too? why not hire your own underwriter, too. that way you can get exactly what you want and - hey wait - why not pick your own interest rate, too?
a borrower may not choose the appraiser. in these days, the lender may not choose the specific appraiser, for that matter. all authorized appraisers that a lender has these days is thrown into a blender, and the assignments are handled on a random basis. please forgive me that aside.
honestly, i believe you are stuck in the situation you have now. as for the interest only loan, you are not prevented from bypassing that scenario by making additional payments to the principal balance.
unfortunately, you have been hampered by the recent real estate slump, with a declining value preventing you from refinancing. if the second mortgagee is amenable to the refinance as you stated it above, that may be the wisest thing to do at this time, along with accelerating payments on your second mortgage.
it would appear, from what i am seeing in your post, that your property would not qualify in this situation. in a declining value market, piw's are not going to happen - simple as that.
as for the suggestion that you hire your own appraiser, might i add this, too? why not hire your own underwriter, too. that way you can get exactly what you want and - hey wait - why not pick your own interest rate, too?
a borrower may not choose the appraiser. in these days, the lender may not choose the specific appraiser, for that matter. all authorized appraisers that a lender has these days is thrown into a blender, and the assignments are handled on a random basis. please forgive me that aside.
honestly, i believe you are stuck in the situation you have now. as for the interest only loan, you are not prevented from bypassing that scenario by making additional payments to the principal balance.
unfortunately, you have been hampered by the recent real estate slump, with a declining value preventing you from refinancing. if the second mortgagee is amenable to the refinance as you stated it above, that may be the wisest thing to do at this time, along with accelerating payments on your second mortgage.
Thanks for the advice everyone. I am just going to go ahead and refinance my 80% loan and keep the 2nd one with the current bank. I will start making additional payments to the principal on this loan as suggested.
Hi Victor,
I think you are on the right way. You do have some advantages in the sense that your credit score is good and you have never been late on the payments. Such things does reflect your creditworthiness.
By the way, I hope you are going for a 30 year fixed rate loan.
I think you are on the right way. You do have some advantages in the sense that your credit score is good and you have never been late on the payments. Such things does reflect your creditworthiness.
By the way, I hope you are going for a 30 year fixed rate loan.
