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Did you know that many loans do not require an appraisal to Lower 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!
Mortgage Rates are Finally Dropping!
According to Freddie Mac Mortgage Rate Survey, mortgage rates have stayed relatively flat over the past couple of weeks.
“Data suggest rates will gently slope downward through the end of the year. Earlier this month, rates plunged and are now lingering just under 6.5 percent, which has not been enough to motivate potential homebuyers.”
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 $500 and $650.
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
How do I receive an Appraisal Waiver?
Riverbank Finance LLC can help run run automated underwriting to see if you are granted an appraisal waiver. It is more likely that you will have your appraisal waived if you have had an appraisal in the last couple of years. Other helpful factors include recent similar sales in your neighborhood and city or suburb locations.
We simply need your home address and estimated property value and our software will confirm if you are eligible for an appraisal wavier!
VA IRRRL to refinance a VA Loan with no appraisal
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).
Requirements include at least 210 days passing since your first payment and a refinance benefit of at least .5% off your current interest rate. You must have no late payments within the past 12 months. The time to recover your costs of refinancing will need to be under 36 months to confirm benefit.
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.
You must have no late payments within the past 12 months and 210 days must have elapsed since your paid your first payment on your current VA loan. You must drop your rate and or PMI at least .5% to confirm a benefit. Your loan amount is limited to the FHA streamline refinance loan calculation.
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.