Have you heard the recent buzz about interest rates? Economists predict that rates will rise over the next year. If you’re thinking about refinancing your mortgage, you might have limited time on your side.
In the frenzy to refinance, some borrowers forget to consider the potential consequences of their property appraisal. You heard correctly: You will probably need a property appraisal to complete a refinance transaction. What if the results are less than ideal?
At MortgageDepot, we find solutions to your most difficult refinance hurdles. Today, we’re going to discuss a creative way to overcome the challenges of a low refinance appraisal, ultimately saving you money at the mortgage desk.
Low Refinance Appraisal? Here Are Your Options
When your refinance appraisal comes in low, you have options. Unfortunately, some of these options probably aren’t what you want to hear. Here are three courses of action that you can take:
- Appeal the appraisal.
Property appraisers aren’t perfect. There is a chance that you inadvertently received a low appraisal when your home deserves higher. If you think this is the case, you can file for an appeal. - Go with a different lender.
Another lender will probably use a different appraiser. There’s always a chance that they might offer a better appraisal. - Put off refinancing until you have more equity in your home.
After you’ve contributed more money toward your principal payment or after home values increase in your area, you might be in a better position to benefit from a refinance transaction.
If you are lukewarm on these alternatives, our loan officers are here to help. Next, we’re going to show you how a Piggyback loan might be your path to refinancing.
Piggyback Loans: An Out-of-the-Box Solution to a Low Refinance Appraisal
If your refinance appraisal comes in low, did you know that you can use a Piggyback loan to save your transaction? If this happens, you can obtain a Piggyback mortgage for the difference you need to reap the benefits of refinancing. If your refinance transaction leads to a significantly lower interest rate combined with PMI elimination, you might come out on top financially with a Piggyback loan.
Contact Us Today!
If this sounds confusing, that’s why we’re here! We’ll help you crunch the numbers to determine if using a Piggyback loan during your refinance is a smart move. Give us a call today!
Contact one of our loan consultants to learn more.
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