Are You Appraisal Waiver Eligible?

November 19, 2019
Author: New England Home Mortgage

Still time to save some money for the Holidays with refinancing your home without the cost of an appraisal. Just because you’re refinancing does not mean you have to go through the hassle of getting a new appraisal.

Appraisals are expensive and can put your refinance at risk if the appraiser gives you a low value. Fortunately, government programs like FHA, USDA, and VA all offer appraisal-free options.

• Many mortgage lenders use an automated valuation model (AVM) to estimate property values. If you have a lot of equity in your home, you may be able to avoid an appraisal and its cost.

• If you refinance an FHA, VA or USDA mortgage with the same kind of loan, you probably won’t need an appraisal.

You’ll have the best chances at receiving an appraisal waiver if you are not taking cash out of your home when refinancing.

If refinancing your mortgage will solve a problem for you, it may be worth the expense of an appraisal. For instance, if your value has risen to the point that you’d be able to drop your mortgage insurance by refinancing, you might consider it. You may recoup the cost of an appraisal in just a few mortgage-insurance-free months.

You’ll also probably need an appraisal to pull cash out of your home and make use of its equity. Because home equity financing, whether it’s a cash-out refinance, a line of credit (HELOC) or a home equity loan is some of the cheapest money available, the cost of an appraisal may not be much of a factor.

If you want to see if you are eligible for an appraisal waiver, you can apply with us today. The application takes just a few minutes and there’s never any obligation to proceed.

Click Here to complete a pre-qualification application.

(860) 736-2747
37 W. Center Street, Suite 208, Factory Square, Southington, CT. 06489