Chicago Mortgage Refinance: What Should Homeowners Consider?
This BLOG On Chicago Mortgage Refinance Was UPDATED On June 29, 2017
Mortgage Refinance with Lower Rates and Save
There are still millions of homeowners in the United States that have mortgage rates higher than 5% where they can lower their mortgage rates and lower their payments by simply refinancing their current home loans.
- Chicago mortgage refinance solutions would save them thousands of dollars.
- Homeowners with a FHA Loan can explore doing a FHA Streamline Refinance with no appraisal, income, credit.
- Refinancing can save tens of thousands of dollars during the course of a 30 year fixed rate mortgage loan.
- The Gustan Cho Team can help homeowners with a Chicago mortgage refinance!
Unfortunately, there are a substantial of homeowners that run into problems during the refinancing process and ultimately their refinancing process comes to a halt.
Chicago Mortgage Refinance Risks
One of the major hurdles that stops a refinancing mortgage loan from closing is when the home appraisal comes in lower than anticipated.
- Recently, I had a Florida Mortgage Refinance Loan that could not go through because the home appraisal came in substantially lower than anticipated.
- The homeowner did research comps and went to websites like Zillow and Redfin.
- Comparable came in around the $800,000 mark but the home appraisal came in at $650,000.
- Low home appraisals is one of the risks associated with refinancing.
- My client submitted all the proper paperwork and her completed signed mortgage application was approved by our underwriting department and we had a clear to close.
- Unfortunately, her appraisal came in at $650,000, which was well below everyone’s expectations including the mortgage lender.
- The low appraisal halted the refinancing process.
- The homeowner needed a minimum of a 75% loan to value on her Florida home in order to proceed with the refinancing and the $600,000 appraisal was pretty much worthless for her refinancing needs.
Home Appraisal For Refinance Mortgage
A home appraisal is not a science.
- It is the accumulation and interpretation of that raw data by the appraiser to produce a value of the subject property.
- If you had three appraisers value a particular home, the chances are that you will get three different values.
- Due to the real estate and credit market crash of 2008, new regulations were implemented in the mortgage industry that included the appraisal process.
Low Home Appraisal Can Be Issue
The bottom line is that if you are refinancing your home, you need to be prepared for a low value appraisal.
- There are solutions on contesting a low appraisal.
- You can order another appraisal or you can contest the appraisal you got.
- If you can get comparable of similar homes that sold in your nearby area, your chances of getting your appraisal contested is great.
- If you can find a home down the street from you that sold to your estimated value of your home, your appraisal will probably definitely be reversed to your favor.
This mortgage blog post article has been updated on June 29, 2017