Why Consider Appraisals For Mortgage Refinancing?
Has your credit score improved? Are you thinking of getting another home mortgage loan? Do you think you are now eligible to get a low interest rate mortgage because of your better credit rating? If yes, then mortgage refinancing is a good option for you.
What is Mortgage Refinancing?
Refinancing is either when you replace a new mortgage loan with the previous one or combine the two into a new loan. It is a good way to obtain a new mortgage loan at a lower interest rate, reduce monthly payments, take cash out of the home for big purchases and switch to a new mortgage company.
Benefits of Appraisals For Mortgage Refinancing
Getting your valuable financial asset like your home, appraised from a reliable and experienced real estate company has several benefits; here are some of the important ones:
Appraisal Helps Avoid Private Mortgage Insurance
If the terms on your existing mortgage requires PMI (private mortgage insurance), then chances are it might be required/needed after the mortgage is refinanced. However, if the market price of your home is higher in actual than what the lender considers, then the loan will be less than 80% of the home’s actual value, this means you won’t have to pay for private mortgage insurance. This can be deduced by the loan-to-value ratio. If it is low, then you can avoid PMI. And the best way to find this out is by ordering an appraisal from an experienced real estate company.
Low Monthly Payments
If you don’t get property appraisal, you will never know the actual worth of your property and you will end up paying a higher mortgage interest rate. Through property appraisals conducted by your real estate company, you can show the lender what your property is truly worth. If the appraisal shows that the loan is a small percentage of your property value, you will get a low interest rate which means low monthly payments.
Increases Chances for Approval
If you are not eligible for programs like FHA and VA, your request for a new mortgage may get rejected. To avoid rejection and get a new loan approved, the best way is ordering an appraisal that reflects an acceptable loan-to-value ratio.
Spot Rising Trend
A real estate company can spot a rising trend in the housing market of the State in which you reside and document it on paper in your appraisal. Documenting it is a good way to ensure that your mortgage refinancing application is approved.
*Only Approved Lenders Can Send
Mailed Payments Please call our office for more information
Gerald Brown Realty & Appraisals Inc is a Certified Real Estate Brokerage and Appraisal company . Membership includes:
GCAAR- Greater Capitol Area Association of Realtors
MRIS-Metropolitan Regional Information Systems
NAR-National Association of Realtors
GRI- Graduate of Realtors Institute
RAA - Certified Residential Accredited Appraiser
Through this website, you can perform a number of tasks from ordering an appraisal, finding a home, finding a lender, business opportunity. Please check back frequently, as our content is always being updated.
= Appraisals ordered in these area's may require a higher or minimum fee
12115 Old Marlboro Pike
Upper Marlboro, MD (301) 574-3462 Office
(301) 574-3463 Fax