Three years ago, I attempted to do a refinance for Brendan and Cheryl. Their mortgage balance was just over $234,000, their interest rate 7.95%. They originally purchased their home in 2005, at the height of values.
At the time I did their application, their appraisal came in at $196,000. They unfortunately didn’t have the ability to come up with enough money to pay down the debt enough so that we could get the refinance done.
In December we spoke again about what were the chances of getting a refinance done. I told them that I would contact an appraiser that I frequently call on to get me a comp check to see what the possibilities are. She communicated back letting me know that there were two recent sales of similar homes in the $240,000 range.
We did a new mortgage application, now doing an FHA loan, which will allow a loan near where we need to be. It all worked, we did a $228,000 loan for them, saving them $613 per month.
Increased values are starting to help many people that were precluded from financing earlier. It certainly helps to be able to ask an appraiser to do a comp check so appraisal fees aren’t being wasted.
By: Brad Finkelstein
"There were almost 2 million fewer Americans underwater on their mortgage at the end of the fourth quarter compared with the same time in 2011, according to the latest Zillow Negative Equity Report."
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