With mortgage interest rates at a near-20-month low, there’s no better time to refinance, and lots of homeowners are taking advantage. That means a lot of phone calls to appraisers. But did you know that it might be possible to refinance with no appraisal?
If you ask most people, they’ll tell you that an appraisal is a necessary part of any refinance, and the cost and hassle of getting an appraisal has made more than a few homeowners pass on refinancing when they might otherwise have profited from it. It’s understandable; after all, there are some definite downsides to getting an appraisal. For starters, there’s the cost. An appraisal performed by a licensed professional will run you between $200 and $600. What’s more, choosing an appraiser is an important decision that can take some time, as you don’t want to rush through things or take matters lightly.
Once you’ve got an appraiser, there’s still the matter of scheduling the appraisal, and making sure that your home is ready to be seen. Finally, there’s the risk of a lower-than-expected valuation. Since the appraisal determines the maximum amount that most lenders will lend, having your home come in under the amount that you expected can really throw a monkey wrench into your plans.
Fortunately, there are a number of different loans that allow you to refinance with no appraisal in Kansas City. For homeowners who are “upside-down” or “underwater” in their loans, the Home Affordable Refinance Program (HARP) allows you to refinance with no appraisal and no loan-to-value (LTV) limit. Refinancing an FHA loan to another FHA loan via their streamline refinance program doesn’t require an appraisal either, nor does a USDA loan under the “Streamlined Refinancing for Rural America” program. For Veterans, the VA Interest Rate Reduction Refinance Loan (IRRRL) is another way to refinance with no appraisal.
Those are a few of the loans that allow you to refinance your home for a better interest rate without the expense and hassle of getting an appraisal. Ultimately, like any decision involving your home, the decision about when and how to refinance is an important one. That’s why you should talk to a professional who can help you make informed choices when it comes to your refinance options.
Whatever path you choose, now is a great time to refinance your home. Mortgage interest rates are lower than they’ve been in a long time, and there are more and more opportunities to refinance without having to jump through a lot of hoops. If you’re ready to refinance your home, or would just like to learn more about how to refinance with no appraisal, contact a First Fidelis, LLC mortgage loan professional in Kansas City today.