Mortgage Refi Question

Discussion in 'Real Estate' started by cyfan92, Aug 5, 2019.

  1. ArgentCy

    ArgentCy Well-Known Member

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    Automated valuations work great in places like subdivisions where everything is the same and there is lots of data. They fail pretty bad when you have a different variable that is more important like condition, waterfront, etc. Neither one is great if there are no sales available
     
  2. ArgentCy

    ArgentCy Well-Known Member

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    Another problem is that the appraiser will get blamed and possibly sued if the value/market goes down. completely unrelated to the report but still a major risk. Especially when a market is already going down. I think half the reason banks still get an appraisal is simply buying their E&O insurance.
     
  3. CloneGuy8

    CloneGuy8 Well-Known Member
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    I keep going back and forth on whether to take this. On the surface it seems like a good deal, however one thing I'm hung up on is the equity I have. I think I'm at about 20%, but I'm not totally sure (only put 5% down when purchasing the house). If the appraisal comes in less than what I think my house is worth, then I would hate to be out $500.00 for the cost of the appraisal.
     
  4. CloneGuy8

    CloneGuy8 Well-Known Member
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    Also I've recently started paying a couple hundred dollars extra on principal each month. Doing a calculator with the extra principal payments, the payoff dates for my current mortgage vs what my new mortgage would be are nearly identical.
     
  5. alarson

    alarson Well-Known Member

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    Even if you continue making those extra payments?
     
  6. CloneGuy8

    CloneGuy8 Well-Known Member
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  7. alarson

    alarson Well-Known Member

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    • Agree Agree x 1
  8. CloneGuy8

    CloneGuy8 Well-Known Member
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    That's what I was thinking; maybe I'm misunderstanding it.
     
  9. Gossamer

    Gossamer Well-Known Member

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    #169 Gossamer, Aug 12, 2019
    Last edited: Aug 12, 2019
    There are two different things being talked about here...a recert and a waiver are not the same.

    See from FNMA: https://www.fanniemae.com/content/guide/selling/b4/1.4/10.html

    https://www.fanniemae.com/content/guide/selling/b4/1.2/02.html

    Appraisers will continue to have jobs as long as new properties are being built...but you're right, they are in harms way long term. So many are terrible at their jobs in terms of customer service and timing.
     
  10. Gossamer

    Gossamer Well-Known Member

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    Both of those statements are false. Appraisers don't get sued because market conditions may impact the value of a home they once appraised.

    Banks/CU's get appraisals for two reasons: 1-they are required to (in nearly all cases) because the GSE they are selling them to requires it....2-because collateral is the ONLY thing in a transaction worth a damn.
     
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  11. Gossamer

    Gossamer Well-Known Member

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    I've never seen someone investigate a recast policy unless they know ahead of time that they will have the need, but agree it would be smart if you know you may want it...furthermore, it's nearly impossible to know for sure who will hold your mortgage long term because so many sell servicing...and the servicer dictates the recast policy.

    Anything over a couple of hundred dollars is ridiculous.
     
  12. 2forISU

    2forISU Well-Known Member

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    Keeps getting better from a purchase/refi standpoint. Rates might see another .25%-.50% drop this week
    upload_2019-8-14_11-24-48.png
     
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  13. ArgentCy

    ArgentCy Well-Known Member

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    It takes times to do real work. Does anyone ever complain how long it takes lawyers to get anything done? And you are paying a heck of a lot more for that job. There are lots of terrible appraisers because they don't make any money. The good ones are stopping doing any lending work and transitioning to private work.
     
  14. ArgentCy

    ArgentCy Well-Known Member

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  15. 2forISU

    2forISU Well-Known Member

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  16. Sigmapolis

    Sigmapolis Minister of Economy
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  17. ArgentCy

    ArgentCy Well-Known Member

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    #177 ArgentCy, Aug 14, 2019
    Last edited: Aug 14, 2019
    Yes, most banks still get appraisals because they are required but there are numerous and growing exceptions. Fannie Mae hasn't required appraisals under the de minimus ($250,000) I believe it was and they've been trying to raise that level to $400,000. Of course we see the requirements decline significantly just as we hit a peak in the market.

    Collateral is not the only thing of value in the transactions. The borrower has always been as much or a bigger piece of the value. It's not like they are going to just let the borrower off the hook if the home declines in value.

    And yes, many appraisers faced lawsuits after the 2008 decline. There were some that were awful and some outright fraud but most were minor errors. Nobody paid any attention or cared until the market declined.
     
  18. ArgentCy

    ArgentCy Well-Known Member

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    And it arrived and it was a doozy.
     
  19. isukendall

    isukendall Well-Known Member

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    Locked in a couple years ago on a 20 year at 3.25%. Super glad we did. If you have the opportunity to do it, do it.
     
  20. cyfan92

    cyfan92 Well-Known Member

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    Most economic research pieces I'm finding are called for another 15-40 point fall thru year-end. Global economy is damn near in recession with China leading the downturn.

    Even if things swing up, I'd say the ceiling is like a 1.75 10yr.
     

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