Banking/Refinance help

[KeyserSoze]

If there are any mortgage gurus to help me with some refinancing questions and recommendations, I'd greatly appreciate it. Mainly in regards to refinancing under the conditions of where my condo is valued a little less than what I owe.

 

[DirtyDave]

While I'm still learning the mortgage end of the banking biz, I think I can help. Unfortunately what you're looking for might be very difficult to achieve. While many lenders used to go to 110% of a home's value for a loan, that has gone the way of the dinosaur due to a tremendous amount of defaults happening lately. You'd be fortunate to find someone willing to go to 95% in the current market. That being said, your best bet would be an appraisal. The trick is to find someone who works with the bank or mortgage company that will appraise the property for what you're looking for or possibly more. Many places use the "tax assessed value" when doing a loan. Often times an appraisal can add quite a bit to the value. The down side for an appraisal is the cost. Often times they run $600 and up. The other thing is that many companies have a select list of appraisal companies they will work with, which can add another ripple to the problem.

Good luck, sorry I couldn't be more help.

 

[KeyserSoze]

Thanks DD. That's the problem I running into now. BOA is going up to 80%max but I thought under the Obama plan there are some that will go up to 105%.

 

[DirtyDave]

105% will be difficult. Your best bet would be to talk to a credit union. I know that the bank I work for has a credit union we work with for home equity loans that need to go over 80% LTV. BOA was hit really hard when the mortgage bubble popped, so I don't think you'll find them very flexible. Credit unions are typically more flexible and have different regulations attached which allow them more freedom. Often times in boarderline cases, where a bank would say no, a CU might say yes.

Best of luck!

 

[DePasta]

That being said, your best bet would be an appraisal. The trick is to find someone who works with the bank or mortgage company that will appraise the property for what you're looking for or possibly more.

That is not likely to happen, especially with the Home Valuation Code of Conduct in place. The institutions cannot communicate with the appraiser until after the completion.

 

[DirtyDave]

That being said, your best bet would be an appraisal. The trick is to find someone who works with the bank or mortgage company that will appraise the property for what you're looking for or possibly more.

That is not likely to happen, especially with the Home Valuation Code of Conduct in place. The institutions cannot communicate with the appraiser until after the completion.

Good point, what I meant to say was that most banks have a select list of appraisal companies they are willing to work with. If you speak to one of them, and discuss what you're looking to do, they might be willing to help a person out if it is in their power. There are definitely laws in place to keep the whole process as uniform as possible.