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Refinancing Without an Appraisal

By B Wood
Dec 17th, 2013

refinance no appraisalIt’s the holiday season and with it comes more expenses. This time of year highlights why it is so important for families to save money. One of the easiest ways to save is by refinancing your home to a lower interest rate. Mortgage rates are still low, and if you haven’t refinanced in the past two years you are probably paying too much money. A mortgage banker can review your loan statement, discuss your home loan, and tell you how much money you could save on a monthly basis.

Many homeowners want to refinance but don’t want to go through the work of having an appraisal done. Whether you don’t want to pay a fee, have someone inside of your home, or are worried about your home’s value, there are mortgage loan programs that do not require you to have an appraisal conducted. This can save you time and money.


FHA Streamline Refinance

The FHA Streamline Refinance program makes it easy to save money. This loan is also referred to as the No Credit, No Income, No Appraisal loan because of how amazingly easy it is. If you have an existing FHA mortgage loan that has been paid on time,you can apply. In most circumstances,the FHA will not ask for recent income information like pay stubs, won’t run a credit report, and won’t order an appraisal. You could have some negative credit history and your hours at work could have been reduced but you may still qualify! This mortgage loan is a saving grace for people that desperately need to reduce their loan payments,but may not qualify in traditional underwriting.

HARP Refinance Loan

The HARP loan program was created for people that owe more than 80% of their homes value. For example: if you have a home loan for $200,000 and your home is worth $210,000 your loan to value is 105%. In this situation having an appraisal completed will cost you money without delivering any value. It won’t reduce how much money you owe on the property. Traditionally you cannot get approved for a mortgage loan if you owe more than the home is worth. With HARP,they only care that you owe over 80%. There is no maximum LTV. Since the value is not an issue,they do not complete an appraisal. They use an automated valuation system instead.

VA Interest Rate Reduction Refinance Loan

If you have an existing VA home loan you may qualify for their Interest Rate Reduction Refinance Loan (IRRRL). Since they already have your loan and are familiar with your payment history,they will often waive the appraisal requirement. Just make sure that your mortgage loan has been paid on time.

Save money this holiday season and into the new year by refinancing your home loan. When you lower,your interest rate you can save hundreds of dollars a month and thousands over the course of the year. Imagine what you could do with the extra money. Perhaps you could celebrate with a vacation, pay for school, or buy a car. Whatever it may be, refinance now before rates go up,and it is too late for you to benefit.