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Replies (5)
- Jo Newkirk, "Jo Newkirk"
- Contributions:33
Do not know why you had a failed refinance last year. I would suggest you remodel the home and place all the monies from the equity line into the first. But that all depends on last year's appraisal.
At last year's appraisal how much money were you able to get. That will give you the answer. The prices have not gone up they may have gone down some.
At last year's appraisal how much money were you able to get. That will give you the answer. The prices have not gone up they may have gone down some.
- Jo Newkirk, "Jo Newkirk"
- Contributions:33
Why put more money into a property that is not worth what you are putting into it. With todays market you can probably sell your home and get another with all the work done for the same price. In todays market improvements only make the house sell faster does not increase the price of the home.
Don't put yourself in a situation where you have more money in the property than you can finance.
Don't put yourself in a situation where you have more money in the property than you can finance.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3427
Home improvements don't have that much of an impact on refinance appraisal. I find the refinance appraisal values are based largely on what other homes have sold for and not as much on your specific home and features. Appraisal values are adjusted based on whether your condition is Average, Above Average, etc....but the specific improvements rarely make a sizable difference.
For your scenario, at 85-90% of current value, you might consider a 15 year FHA loan. You would have to pay a one time fee of 2.25% of loan amount, but you could also avoid monthly mortgage insurance. Your rate reduction should be enough to offset the fee within a reasonable time.
You could also look into a HARP refinance and completely avoid mortgage insurance if your existing loan is owned by Fannie Mae or Freddie Mac, so you should certainly check on that as well.
For your scenario, at 85-90% of current value, you might consider a 15 year FHA loan. You would have to pay a one time fee of 2.25% of loan amount, but you could also avoid monthly mortgage insurance. Your rate reduction should be enough to offset the fee within a reasonable time.
You could also look into a HARP refinance and completely avoid mortgage insurance if your existing loan is owned by Fannie Mae or Freddie Mac, so you should certainly check on that as well.
- borath61
- Contributions:2
Thanks for the replies we are not eligible for HARP because current loan is not Freddie/Fannie(the main reason we couldn't refi last year)The main question is we are going to do the improvement projects anyway should we do at least the replacement windows now which we can afford now and put off the appraisal/refi for a month or should we try to lock in the low rates now. Its that 90% ratio that is in quetion
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
You don't have to take a chance at an unfavorable appraisal. A realtor will give you a CMA. About $350 will buy you an appraisal so you have a clue what the value will be when you pay for another appraisal for your loan. Whatever you do, windows, etc. is for your benefit,not for increasing the value by any substantial amount. .... Happy funding, Rudi
Refi first or remodel?
We have several improvement projects we are close to being ready to do starting with replacement windows and then a major kitchen/dinning room overhual. Should we
move up some of the remodeling to add value to the house or should we try to lock in
a refi at the current low rates but take a chance an unfavorable appraisal
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