Category: Mortgage Rates

How to Lower your Interest Rate without an Appraisal

How to drop your mortgage rates. No Appraisal Required.

Did you know that many loans do not require an appraisal to drop your interest rate on your mortgage? One of the largest hurdles for people considering a rate reduction refinance is the up-front cost of an appraisal.

The good news is that there are options to lower your rate with no appraisal required!

How Much Does an Appraisal Cost?

Many times, when you get a home loan, an appraisal is required to report to the lender the condition of the home as well as the market value. By law, appraisals are completed by independent 3rd party licensed appraisers.

They typically charge the buyer up front for their services. The cost of an appraisal can vary based on the property location and property type. The average cost of an appraisal is between $450 and $550.

Can I Refinance a Conventional Loan without an Appraisal?

Refinancing a conventional loan can be done without an appraisal. While not all will qualify, Fannie Mae and Freddie Mac both offer property inspection waivers which are eligible on both Purchase Loans and Refinance Loans.

To get a property inspection wavier on a Conventional loan, you will need to have at least 20% Equity (80% Loan to Value). This is because Private Mortgage Insurance companies always require an appraisal to approve the PMI.

NOTE: Not all banks and lenders are able to offer Fannie Mae and Freddie Mac backed mortgages. This means that if you were told you are not eligible by another lender, Riverbank may still be able to help with no appraisal required!

What restrictions are there to do a Conventional Loan without an Appraisal?

There are several restrictions on Conventional Appraisal Waivers Including:

  • No Cash-Out Refinances
  • No Investment Properties
  • Single Family Residences Only (No Multi-Unit Homes)
  • Loan must be under the Conforming Loan Limits
  • No Properties where Adverse conditions are present based on Sellers Disclosure or Inspections
  • No Manufactured Homes
  • No Constructions Loans
  • No Non-Arms Length Transactions
Example Appraisal Waiver Certificate.

Appraisal Waiver Pre-Check

Riverbank Finance LLC can do an appraisal waiver pre-check to see if your property is eligible to refinance with no appraisal required.

We simply need your home address and estimated property value and our software will confirm if you are eligible for an appraisal wavier!

Refinancing a VA loan with no appraisal with an IRRRL

Military veterans that currently have a VA loan on their primary residence may be eligible to drop their interest rate with a VA IRRRL (Interest Rate Reduction Loan).

This streamlined refinance loan required limited documentation to allow veterans to take advantage of lower rates and payments. No Income and No Appraisal and only a mortgage credit rating is required.

Refinance an FHA loan with No Appraisal with an FHA Streamline Refinance

Similar to the VA IRRRL, homeowners that currently have an FHA mortgage may be able to lower their interest rate with no appraisal with an FHA Streamline Refinance loan.

This loan allows a homeowner to take advantage of lower mortgage rates with limited documentation. They may be able to close quickly with no appraisal, no income documentation and only a mortgage credit rating.

What are the Benefits of Refinancing my Mortgage?

Refinancing you mortgage may be a great financial decision. It never hurts to review your options to see if a mortgage refinance is right for your goals.

You may be able to save thousands of dollars in interest payments or pay off your loan more quickly.

Refinance Benefits may Include:

  • Lowering Your Interest Rate – Dropping your rate may save you thousands in Interest.
  • Paying off your home more quickly – Shorten your mortgage term may help you be debt free quickly.
  • Dropping PMI off your mortgage – If your equity has increased you may be able to save on your monthly payment by dropping PMI.
  • Getting Cash-Out for Home Improvements – Tap in your home’s equity for upgrades, family vacations or to get Cash-in-Hand.
  • Consolidating Debt and Lowering your overall Monthly Payments – Pay off high interest debts by consolidating them into your low rate mortgage.

Talk with a Refinance Expert

Riverbank Loan Officers are experts on refinance loan options. We may be able to save you thousands in interest compared to your current mortgage.

Call us today at 800-555-2098 or request information below.

Request Information Now!

Why Michigan Mortgage Rates Dropped in 2019

Surprised about Mortgage Rates

March 2019 was the best month for Michigan Mortgage Rates in a Decade! Rates dropped the sharpest they had in a single month since the mortgage meltdown which led to a recession in the late 2000’s.

This is great for anyone that is buying a home or looking to drop their mortgage rate. Many are wondering why rates dropped and will they go up or down.

Why did mortgage rates drop in Early 2019?

The slow economy in Europe is a factor resulting in lower mortgage rates. With the effect of Brexit causing uncertainties for business and long term investment plans, Europe’s economy has been suffering.

When major global economies are halted, investors demand more predictable investments like bonds and mortgage backed securities which create lower mortgage rates.

The Federal Reserve Decided to Leave the Federal Fund Target Range Unchanged

The Federal Reserve does not directly set mortgage rates however they do have a major effect on them. The Federal Funds Rate is the rate at which banks can borrow money from Federal Reserve Funds.

Banks use this rate to base interest rates on loans. If banks can borrow money cheaper, they can lend it out in the form of mortgages and other loans at lower interest rates.

The Federal Reserve released its policy statement showing that they do not expect to hike Federal Reserve Rates for the rest of the year due to the slower growth in the economy.

This caused Treasury Yields to Fall which helps mortgage rates. The Treasury Yields dropped to levels not seen for 10 years which could indicate a future recession.

Home Sales Decline and Housing Inventory Increased

The National Association of Realtors (NAR) reported that the seasonally adjusted rate for sales of existing homes dropped 4.9% in March 2019 from the previous month and were also down year over year 4.7%.

NAR also confirmed that home inventory increased from 3.5 to 3.8 months’ worth which indicates slowing home sales.  Although sales appear to be slowing, this may be due to the 3.8% increase in median home sales prices.

Jobs Report Numbers Low

While the real estate market shows strength, job grown has dwindled. The headline nonfarm payrolls may have disappointed some with only 20,000 new jobs.

The average since taking the survey from 1939 is 125,000 new jobs created. This is the worst number in job growth since September 2017 when two major hurricanes hit.

US Trade Deficit Worst in 10 Years

Recent reports show that the U.S. trade deficit jumped to $59.8 billion. This is the largest it’s been in the last ten years. The uncertainty with Chinese trade tariffs have had a negative impact on US manufacturing and exports.

Will Mortgage Rates go Up or Down?

The million dollar question from all people considering a mortgage is, “Will Mortgage Rates go Up or Down?” If this were easily predictable then everyone would not be wondering this.

There are several factors pushing upward on mortgage rates for the long term. Progress in the US / China Trade Negotiations, Brexit decisions postponed, Oil Prices Rising, the US stock market hitting record highs; these all are negative forces on mortgage rates.

Mortgage Rate Lock Advice

No one can predict the future with certainty. My advice to my friends, family and clients is to review benefits of locking in a mortgage rate or refinancing right now.

  • If it makes sense do it!
  • Do not wait or you will be late!
  • No one can predict Mortgage Rates!

If your mortgage rate is over 5%, now may be a great opportunity to drop into the 4’s for a Conventional 30 year fixed mortgage or even 3’s for a 15 year home loan.

With upward pressure on mortgage rates, it is a risky gamble to wait to see if they will go lower.  If the numbers make sense and add benefit then take advantage of it immediately!

Request Information Now!