No Appraisal Refinance

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dustyroyal819
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No Appraisal Refinance

Post by dustyroyal819 » Thu Sep 29, 2016 3:35 pm

Has anyone successfully (and recently) refinanced their mortgage without going through an appraisal? If so, who did you use?

I have 190k left on a 270k property, a ~70% LTV.

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Meg77
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Re: No Appraisal Refinance

Post by Meg77 » Thu Sep 29, 2016 3:39 pm

Mortgage banker here. I don't think a refinance without an appraisal is possible. If your lender still holds your mortgage you might be able to do a modification (not a full refi) with your current lender without getting an appraisal, but if you got a conforming loan that's been sold you're probably out of luck.
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SouthernCPA
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Re: No Appraisal Refinance

Post by SouthernCPA » Thu Sep 29, 2016 3:50 pm

I don't see how they'd do a refi without a current appraisal. They'll need a current appraisal in order to sell the mortgage on the secondary market (which they'll likely do).

bigred77
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Re: No Appraisal Refinance

Post by bigred77 » Thu Sep 29, 2016 3:51 pm

I know Penfed will have a 3rd party run a free to you electronic appraisal and if your LTV is is low enough they will not require you to get a paid for, in person appraisal.

dustyroyal819
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Re: No Appraisal Refinance

Post by dustyroyal819 » Thu Sep 29, 2016 3:58 pm

bigred77 wrote:I know Penfed will have a 3rd party run a free to you electronic appraisal and if your LTV is is low enough they will not require you to get a paid for, in person appraisal.
Perfect, this is what I was looking for. I'm really looking for a way to avoid having to meet someone at the house and pay them ~$400 to tell me that I have plenty of equity.

pilotcdc
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Re: No Appraisal Refinance

Post by pilotcdc » Thu Sep 29, 2016 5:07 pm

I just completed a refinance with National Mortgage Alliance (NMA) as recommended by many Bogleheads. I was able to refinance without an appraisal (50% LTV). The computer was able to determine a value and issue a property inspection waiver ($75 paid to Fannie Mae instead of $400-ish for a full appraisal). The only frustrating part was not knowing if the waiver would be accepted until the file went through underwriting...I was going out-of-town for vacation and wanted to know if I needed to be around for an appraisal, but they couldn't give me a definitive answer.

I also used the no-cost option; not sure if that played a role. Good luck!

Carefreeap
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Re: No Appraisal Refinance

Post by Carefreeap » Thu Sep 29, 2016 5:36 pm

Is this a refi to pull out cash or lower the payment?

If not and all that you're doing is to lower the rate you might check with your existing lender to see if you qualify for a HAMP or HARP refi. I refinanced two different houses a couple of years ago and all that I had to produce was some form of proof of income (in the last case just 1099s from oil royalty income). No appraisal, no tax returns and the income only had to be high enough to pay the mortgage (not your standard qualifying ratios of less than 33%). I don't think they even did a hard pull on our credit report.

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camper
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Re: No Appraisal Refinance

Post by camper » Thu Sep 29, 2016 5:41 pm

We did a no cash refi last month with Sebonic (Cardinal Financial). We were told it was going to be $575 for the appraisal. We paid it. The next day we received a refund. They notified us we qualified for some sort of government program (not HARP) where no appraisal was necessary.

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Watty
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Re: No Appraisal Refinance

Post by Watty » Thu Sep 29, 2016 10:36 pm

The cost of getting the house appraised or not would be a trivial factor in deciding what the best loan is to refinance with.

That would be sort of like shopping for a car by asking which car dealers will give your free floor mats and a full tank of car.

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sunny_socal
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Re: No Appraisal Refinance

Post by sunny_socal » Fri Sep 30, 2016 12:07 am

I did one a couple months ago, no appraisal, no fee, high LTV.

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whodidntante
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Re: No Appraisal Refinance

Post by whodidntante » Fri Sep 30, 2016 12:13 am

I opened a HELOC a year ago with no appraisal. They pulled an electronic appraisal from a government database, I believe. That cost me something, but it was very cheap. Since I was not asking for high LTV to be available with the HELOC, I was not required to pay for an appraisal. I do not know if this can be done for a refinance.

afan
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Re: No Appraisal Refinance

Post by afan » Fri Sep 30, 2016 4:18 am

We refinanced with no appraisal. Low loan to value. Mortgage company could not get it together to arrange an appraisal, then decided they did not need one. Loan sold to Fannie Mae. $75.
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama

UALflyer
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Re: No Appraisal Refinance

Post by UALflyer » Sun Nov 27, 2016 8:24 am

For Fannie and Freddie Mac loans, a no appraisal refi is possible if the mortgage is less than $250,000, the house is less than $1,000,000 (there are also LTV limitations, which vary on the loan type).

cherijoh
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Re: No Appraisal Refinance

Post by cherijoh » Sun Nov 27, 2016 8:43 am

dustyroyal819 wrote:Has anyone successfully (and recently) refinanced their mortgage without going through an appraisal? If so, who did you use?

I have 190k left on a 270k property, a ~70% LTV.
With the more stringent mortgage guidelines post-bubble, would 70% LTV be considered "low enough" not to need an appraisal? I'm sure 50% LTV (as one of the other posters mentioned) would qualify, but I'm sure about 70%.

OP - what is the basis for your assumption that the property is worth $270K?

dustyroyal819
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Re: No Appraisal Refinance

Post by dustyroyal819 » Sun Nov 27, 2016 9:01 am

cherijoh wrote: OP - what is the basis for your assumption that the property is worth $270K?
An official bank appraisal.

dustyroyal819
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Re: No Appraisal Refinance

Post by dustyroyal819 » Sun Nov 27, 2016 9:02 am

UALflyer wrote:For Fannie and Freddie Mac loans, a no appraisal refi is possible if the mortgage is less than $250,000, the house is less than $1,000,000 (there are also LTV limitations, which vary on the loan type).
At least two banks have disagreed. They say that's possible, but you need a waiver from Fannie/Freddie. The conditions for the waiver are unclear.

tim1999
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Re: No Appraisal Refinance

Post by tim1999 » Sun Nov 27, 2016 9:22 am

Small local bank. They only did a "drive by appraisal" that did not involve going inside the house. I suspect they just wanted to make sure the place hadn't collapsed since the last refinancing I did with them.

mikep
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Re: No Appraisal Refinance

Post by mikep » Sun Nov 27, 2016 9:22 am

http://www.calcoastcu.org in CA does not require an appraisal for loan amounts under 250K.. not sure of loan to value for all "term buster" short term 5, 7, 10 year no cost loans.

Its the only place now where I see a no cost rate under 3% for 5 years.

DISCLAIMER: I have not used them for a refinance. I have 5.5 years left on 3% and I need a little more rate savings than 2.875% to bother. I do have them for a 1.48% auto loan and they are fine.

cherijoh
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Re: No Appraisal Refinance

Post by cherijoh » Sun Nov 27, 2016 9:26 am

dustyroyal819 wrote:
cherijoh wrote: OP - what is the basis for your assumption that the property is worth $270K?
An official bank appraisal.
How stale is the appraisal?

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munemaker
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Re: No Appraisal Refinance

Post by munemaker » Sun Nov 27, 2016 9:31 am

dustyroyal819 wrote:
bigred77 wrote:I know Penfed will have a 3rd party run a free to you electronic appraisal and if your LTV is is low enough they will not require you to get a paid for, in person appraisal.
Perfect, this is what I was looking for. I'm really looking for a way to avoid having to meet someone at the house and pay them ~$400 to tell me that I have plenty of equity.
I know someone who recently refinanced the appraisal was paid by the lender. An in-person appraisal was still performed, and they still had to meet the appraiser at their home.

UALflyer
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Re: No Appraisal Refinance

Post by UALflyer » Sun Nov 27, 2016 11:56 am

dustyroyal819 wrote:
UALflyer wrote:For Fannie and Freddie Mac loans, a no appraisal refi is possible if the mortgage is less than $250,000, the house is less than $1,000,000 (there are also LTV limitations, which vary on the loan type).
At least two banks have disagreed. They say that's possible, but you need a waiver from Fannie/Freddie. The conditions for the waiver are unclear.
None of the banks have disagreed. It just sounds like you misunderstood their explanation.

All Fannie Mae and Freddie Mac loans are automatically run through their underwriting software, which reviews each individual case and spits out the underwriting requirements, which each lender then follows. Here's Fannie Mae's latest appraisal criteria:

https://www.fanniemae.com/content/fact_ ... -sheet.pdf

Here's the FDIC explanation, which also contains the $250,000 loan limit: https://www.fdic.gov/regulations/resour ... isal-2.pdf

afan
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Re: No Appraisal Refinance

Post by afan » Sun Nov 27, 2016 1:43 pm

Our no appraisal refinance sold to Fannie Mae. The numbers were higher than suggested above, but very low LTV. We did not care who bought the loan and we never investigated what Fannie or Freddie required.

But I agree I don't see the point of focussing on avoiding an appraisal. You want the best overall deal, even if it requires an appraisal. When we started our application we were expecting to get an appraisal. The broker then decided they did not need one. Saved us ~$400.
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama

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sunny_socal
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Re: No Appraisal Refinance

Post by sunny_socal » Sun Nov 27, 2016 9:07 pm

I did a no-appraisal refi back in August, worked out very well - 3 weeks from application to signing. The broker saw that we had a very good LTV and the appraisal & fee were indeed waived. YMMV, just shop around. Things tend to change quickly.

UALflyer
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Re: No Appraisal Refinance

Post by UALflyer » Mon Nov 28, 2016 7:56 am

sunny_socal wrote:I did a no-appraisal refi back in August, worked out very well - 3 weeks from application to signing. The broker saw that we had a very good LTV and the appraisal & fee were indeed waived. YMMV, just shop around. Things tend to change quickly.
As the link above demonstrates, for Fannie and Freddie loans the lenders themselves, and especially the brokers, have no discretion to waive the appraisal requirement, so shopping around would be useless. For Fannie and Freddie's loans, the requirements are established by their underwriting software, which is used on every single mortgage application.

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