what will be the refinance amount be base on, the original amount or the newly appraised amount?
Stanley W asked: as we all know,properties through out the us has been reappraised and rates are low. what will the the refinance amount be based on, the original loan or the current devalued amount.
Herman
Tags: Current, Refinance
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July 20th, 2009 at 9:29 am
Tom
Part of the problem that caused the “mortgage crisis”, is that folks were allowed to take out mortgages totaling more than the value of the home. Don’t count on that happening again in the near future.
If you refinance, the new mortgage will be based on the current value of your home.
July 21st, 2009 at 6:22 pm
Shannon
When you apply for a loan it goes through a process called underwriting (to determine risk for the lender). Part of the risk equation is the value of the property - TODAY. When you refinance, they will use today’s value in making a decision and determining the loan-to-value ratio. If these numbers aren’t acceptable, they won’t make the loan.
good luck!
ps - original loan and original value are currently irrelevant.