refi appraisal question

Toggle sidebar Toggle sidebar
Status
Not open for further replies.
S

Skiddex

Golden Member
May 17, 2001
1,380
0
76
So I am refinancing my condo. i bought it as a foreclosure back in 2008 and have since put about 20k into renovations since due to the previous owner trashing it on the way out. when they asked me what i thought it was worth, i just kind of added up what i had bought it for + what i had put into it knowing that the market has gone down a bit. well i got the appraisal back and it came in about 15% higher that what i had initially thought and now the refi company is going back to the appraisal company asking for more comps and to 'double check' their numbers. has anyone heard of something like this? from the comps they had on the appraisal due to recent sales, they seemed in the ball park but i am not sure why they'd want that number possibly lowered...
 
Last edited:
DesiPower

DesiPower

Lifer
Nov 22, 2008
15,366
740
126
That's really weird... I thought it would basically be in the financial institute's interest. For example if you walk away they make money, so it looks good on book. btw, what's you refi amount? is it more than the base+20k? are you trying to get home equity with that or refi an equity.
They can charge you more APR if the price of home and refi amount are really close, that could be the only reason they care about the evaluation amount...
 
S

Skiddex

Golden Member
May 17, 2001
1,380
0
76
DesiPower said:
That's really weird... I thought it would basically be in the financial institute's interest. For example if you walk away they make money, so it looks good on book. btw, what's you refi amount? is it more than the base+20k? are you trying to get home equity with that or refi an equity.
They can charge you more APR if the price of home and refi amount are really close, that could be the only reason they care about the evaluation amount...
Click to expand...

refi amount is 160k, appraisal value was 235k
 
S

Skiddex

Golden Member
May 17, 2001
1,380
0
76
DesiPower said:
That's really weird... I thought it would basically be in the financial institute's interest. For example if you walk away they make money, so it looks good on book. btw, what's you refi amount? is it more than the base+20k? are you trying to get home equity with that or refi an equity.
They can charge you more APR if the price of home and refi amount are really close, that could be the only reason they care about the evaluation amount...
Click to expand...

and no, not looking to get any equity out, just looking to get in at a lower rate and lower the term to 15 years
 
M

mshan

Diamond Member
Nov 16, 2004
7,868
0
71
I think originator has to keep loan 6 - 9 months in order to make money, then they can sell it to someone else.

Or maybe they are worried about risk of put back down the road if you were to later default?
 
S

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
There's been a huge crack down to ensure appraisers aren't colluding with lendors so the bank is a little nervous if the number comes back significantly higher than your capital+loan amount.
 
C

Corporate Thug

Lifer
Apr 17, 2003
37,622
0
76
Skiddex said:
without starting the big 'pay off loan fast vs. keeping a loan until retirement' debate, its because i can afford it and its not much more than my current payment
Click to expand...

Fair enough...didn't want to spark a debate, you know what's best for you.
 
M

mshan

Diamond Member
Nov 16, 2004
7,868
0
71
Don't know what spread is now, but IIRC, historically 15 year has been 0.5% below comparable 30 year fixed.
 
Status
Not open for further replies.

TRENDING THREADS

COMPANY
RESOURCES
FOLLOW
Top Bottom