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.
Borrowers with a good credit score have a great advantage when it comes to mortgage refinancing as it makes them eligible to convert a variable loan rate into a fixed one with ease.
However, before you, the borrower, apply for a mortgage refinancing for your home, it is advised to get professional help and get a property appraisal.
Whether you live in Upper Marlboro, Maryland, Prince George County or Washington DC, getting assistance from a recognized and experienced real estate company can help you get a lower interest rate on your mortgage easily. This is because they have in-depth knowledge about the real estate market and the mortgage appraisal expertise that can help you capture a low interest.

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
After 30 days of completion of an appraisal, any outstanding accounts will be considered delinquent