Question by Adam: What refinance option should I choose? My home appraised higher than current mortgage.?
Hi. I am trying to refinance our current home. Currently, we have a rate of 5.25% on a mortgage with a home value of 247000. I am trying to refinance and the new appraisal of the home was 260,000. The refi would have a rate of 3.625%.
Since the home went up in the value, what does this mean for me and the refinance? Thanks!
Answer by Ariaread
Means you will have NO problem being approved. Borrow the 247k ONLY at 3.65
thus smaller monthly payments then you have now.
Know better? Leave your own answer in the comments!
It means you house appraised high enough to not have to go through a HARP. Lenders will still want to look at your credit score, income, etc to make sure you qualify. That is what will affect the rate you can get.
If your loan is a Fannie Mae or a Freddie Mac, and your last refinance was before July 2009, you may still want to consider a HARP loan. With a HARP loan you will not have to pay Private Mortgage Insurance (PMI).