Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Like everyone else it seems, I'm interested in refinancing my house. I don't need cash out and my income, DTI ratio (with ALL debts including mortgage it's <30%), credit score (800+), etc. are all excellent. The house value is probably between $275,000 and $300,000 and my current mortgage is about $150,000 (I pay extra every month). I currently have a 10-year ARM at 3.125% with 2 years left, so I was planning to refinance before it adjusts, but the current interest rates make me want to do it sooner rather than later.
The bank that holds my current mortgage has excellent rates for 15-year loans (today 2.75% with no points), but I am pretty sure they require an in-home appraisal. And that's what concerns me, mostly because I'm about to have my 2nd knee replacement surgery (postponed from 2 months ago) and if I get any kind of infection afterward, it's a HUGE deal. The pandemic makes me even more wary, of course. But I don't know if there are any companies that do refi's (even for people with excellent qualifications) without an in-home appraisal -- especially at rates close to what my current bank is offering?
I just refinanced my house with no in-home appraisal, no upfront $500 appraisal fee. They put your home info into the computer and the algorithm determines if your house needs an in-home appraisal or not. My house was barely close to 80% LTV and was approved so with yours being at 50% LTV I am sure they waive the appraisal fee. Best of all, you don't pay for anything until the loan is ready to fund and you sign the documents. By then, I have in writing on the interest rate, closing cost, etc., clearly spelled out for me.
I initially approached my mortgage lender to refinance, she not only charges the $500 appraisal fee automatically , she quoted me a $15K closing cost. With the new mortgage lender, I paid less than $4K to close for a $400K loan. It pays to shop around.
DM me if you'd like to give them a call. They can decide in 24 hours if they can waive the appraisal or not. I am very happy with them and would gladly to refer them.
The bank that holds my current mortgage has excellent rates for 15-year loans (today 2.75% with no points), but I am pretty sure they require an in-home appraisal.
Just pretty sure? Why don't you just call up and find out?
Quote:
Originally Posted by karen_in_nh_2012
But I don't know if there are any companies that do refi's (even for people with excellent qualifications) without an in-home appraisal -- especially at rates close to what my current bank is offering?
Again, there's this wonderful invention called a telephone. It allows you to sit at home and call up banks and credit unions and mortgage lenders and talk to real people about loans and procedures instead of relying on anonymous strangers on the internet.
Just pretty sure? Why don't you just call up and find out?
Because they weren't open at the time that I posted. And C-D posters often have similar experiences that they can share -- as the very helpful OTHER poster in this thread did.
Quote:
Originally Posted by adjusterjack
Again, there's this wonderful invention called a telephone. It allows you to sit at home and call up banks and credit unions and mortgage lenders and talk to real people about loans and procedures instead of relying on anonymous strangers on the internet.
Wow, why be a jerk? I always do research online first BEFORE calling -- wastes a lot less time than sitting at the phone making call after call after call. Many lenders have enough info online to give you an idea if they would work for you or not -- which I'm sure you know. They just don't all have specific info about on-site or computer-based appraisals.
It's a PIW - Property Inspection Waiver. I'm seeing a lot of them lately. Good credit combined with low LTV (Loan To Value) - meaning the loan amount is less than 80% of the value of the home. However I have gotten them on cashout refinances as well.
Example: 800+ fico, and our loan amount was about 50% of the value of the home as seen on Zillow/Realtor/etc. I reduced the prospective value to a point where the loan was 69% of the value, because that change did not disrupt pricing. The AUS (Automated underwriting System) "understood" that the value we were using for the loan was significantly lower than valuation models had it. PIW, no appraisal fee, no appraiser walking into the house, fast close.
A PIW does not obstruct your ability to get the best rates, too.
It's a PIW - Property Inspection Waiver. I'm seeing a lot of them lately. Good credit combined with low LTV (Loan To Value) - meaning the loan amount is less than 80% of the value of the home. However I have gotten them on cashout refinances as well.
Example: 800+ fico, and our loan amount was about 50% of the value of the home as seen on Zillow/Realtor/etc. I reduced the prospective value to a point where the loan was 69% of the value, because that change did not disrupt pricing. The AUS (Automated underwriting System) "understood" that the value we were using for the loan was significantly lower than valuation models had it. PIW, no appraisal fee, no appraiser walking into the house, fast close.
A PIW does not obstruct your ability to get the best rates, too.
Thank you -- that's very helpful, especially the example you included (which sounds a lot like my own situation).
Incidentally, I am actually selling my one rental property (that's a different thread) and I just heard from my agent TODAY that the buyer's lender is doing an automated appraisal. She says that they have become common in my area because of COVID-19 as well as the huge number of appraisals that need to be done (plus, in the case of the buyer, she apparently has great numbers). I will check with the bank that holds the mortgage on my own residence to see what they are doing these days. (When I last checked a couple of months ago, they required an in-house appraisal, and at that time I was waiting for surgery #2 -- then it got postponed. So it's been a bit of a crazy several months.)
I will write more after the whole process is DONE, but I just wanted to provide a quick update. Turns out that the bank that holds my current mortgage also has great rates (the best I've seen), so it looks like I am refinancing my 10-year ARM at 3.125% (has 2 years left at that rate) to a 15-year fixed-rate loan at 2.5% (had to pay half a point for that rate, but for me half a point is <$800). AND I got an appraisal waiver due to my credit score, the low LTV, the fact that it's a 15-year loan, etc. All we're waiting for now is the rental house closing (which is coming up soon) so I can turn in the last couple of documents from THAT.
It was a VERY simple process -- I applied Friday night, got tentative approval from the loan originator on Saturday morning, uploaded all of my docs, found out yesterday that the appraisal waiver was granted, etc. I love my bank (Bar Harbor in Maine -- they only lend in 4 states in New England).
I am refinancing my loan now and received a PIW. I am going with a competitor (I never do any personal biz where I work - no exceptions). Fannie has what they call Day 1 Certainty - the automated UW can tie into your bank and employer, eliminating even more paperwork.
My son is refinancing and received a PIW on an 85% LTV.
We are both approved and they cannot close us until mid August. Just as well, title hasn't caught up with the new speed.
I am refinancing my loan now and received a PIW. I am going with a competitor (I never do any personal biz where I work - no exceptions). Fannie has what they call Day 1 Certainty - the automated UW can tie into your bank and employer, eliminating even more paperwork.
My son is refinancing and received a PIW on an 85% LTV.
We are both approved and they cannot close us until mid August. Just as well, title hasn't caught up with the new speed.
Wow, I'm really surprised that they would do a PIW on an 85% LTV -- even in these pandemic days. But it's great that both you and your son will have a smooth process (well, sounds like it!).
My bank told me I should be able to close 1-2 weeks after I get the final paperwork in (and all that's left is the rental house sale -- that's due to close this coming week). That MAY be because they've held my original mortgage for the past 8 years, so I have a lot of history with them. I'm hopefully looking at closing by mid-July at the latest.
I have a problem that's been bugging me and this thread seems the most relevant to post this.
I am currently going through a refinance of my home. The lender required a $550 appraisal. In the past, I've paid the same that included a full appraisal. This time around, I was not contacted and was told they only needed an exterior (I presume that means "drive-by") appraisal.
In my mind, this should seem to cost less than $550 given that less work is done. Would my lender try to pocket anything that is not paid to the appraiser? Is that legal?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
quick update
