Rates are flat today. It’s Federal Reserve Day today and Ben Bernanke will host his second Fed news conference. The bond market could react to his statements. Today’s rates with NO lender fees ARE 4.5% on a 30 year, 3.75 % on a 15 year and 2.75% on a 5/1 ARM. (click here to get the details).
One of the major hurdles in today’s market is obviously appraised values. Foreclosures and short sales continue to bring down values and effect your appraisal. But, did you know you can do a refinance or purchase transaction with no appraisal? Its true!
Learn more in today’s episode:
Are you looking for a vacation home? If so, it’s a great time to buy! Click here for the top 10 vacation real-estate markets.
Ok, back to the appraisal issue. When your loan officer enters in your data into the automated underwriting system it will tell you if there will be an appraisal needed and what kind.
Let me break them down for you.
You have a full appraisal or a URAR which will be interior and exterior appraisal with a value. This is the most common. There is also a 2055 appraisal which is a “drive by” appraisal with a value and a 2075 appraisal which is a “drive by” appraisal with no value. The 2055 and 2075 are less expensive and don’t require an appointment. The 2075 is really just to make sure you’re home hasn’t fallen apart. The appraisal type is determined largely by your credit and amount of equity you’re putting down. If you are doing a cash out mortgage you will need a full URAR every time.
FHA appraisals are a little different. You will always need a full FHA appraisal on a purchase or refinance unless you are specifically doing a streamline refinance with no appraisal. This will allow you to do a refinance and reduce your rate with no appraisal as long as you don’t finance any closing costs. This is very popular right now, but it is only for a FHA to FHA refinance. That is one advantage of having a FHA loan.
So for some of you out there the appraisal issue is a non issue. Ask your lender if you qualify for a no appraisal loan.
Hey, if you get a chance, I would love it if you could help me in my mission to bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter. Let’s change the way people shop for a mortgage…forever!
See you tomorrow!
PS. To ask a question, get advice, or find out what your lender is making off your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002