Low appraisal but loan still approved

[mavric1298]

Not sure if anyone would be able to answer this, but, if the refi is approved even with a bad appraisal (see other threads), does it effect anything other than loan to value ratio in relation to 80/20 and mortgage insurance?

We locked in a good rate, and even though I'd like to switch from chase to our credit unions parner for refi, the way rates are looking it doesn't seem to make much sense. The refi appraisal isn't a public record correct? IE refi doesn't show as a sale or anything like that?

 

[Restrain]

The prior appraisal, if you want to use it at the CU, may or may not be acceptable to the CU. The appraisal is the property, for lack of a better term, of Chase. If you want to start over, as far as the CU is concerned, the loan is a blank slate. The prior appraisal is not public record, if that is what you are concerned about.

Public records only show the signed Note and Mortgage, amount, terms, etc.

 

[huntercharlie]

And a CU over Chase any day.

 

[mavric1298]

Sorry let me clarify. We locked a lower rate with then we could now get at our credit union (who only has a partner that does loans), and the difference in rate I don't think justifies moving from chase to the CU even though we hate Chase and would love to move the loan.

Since they approved the refi, is there any downside to moving forward with it with the lower value of the house? We ended up having another appraiser informally take a look (a friend of our realtor who is a family friend and has no vested interest) who thought the house was worth significantly greater amount, which was seconded in opinion by our new tax assessment which clashed with the appraisal as well. As long as we are still under the PMI required ratio, it shouldn't matter they think the house is worth less right?

I just don't want to move forward reducing our interest rate and later finding out that since we refi'ed with the house valued at 340

 

[J Grant]

The appraisal amount is not part of public records and is private between you and lender or the secondary market such as Fannie Mae.

Yes, the appraiser friend of the Realtor always thinks the value should be higher. Those tend to be the appraisers Realtors tend to recommend. Their vested interest is referral work from the Realtor.

Be happy you got a low rate.

 

[Terrel L. Shields]

An independent lender would normally hire yet another appraiser, therefore where that appraisal would 'land' is anyone's guess.

 

[Kim Whiting]

Not sure where you stand equity wise but example:
lender wants their mortgage secured by 20% over the mortgage amount.
mortgage 100,000.....appraisal 125,000(even though you think your worth 150,000)....lender is happy, you're not. So what? You get the deal done.
see this on high end lake michigan properties all the time.
offer is 800,000....appraisal 725,000......buyers putting down 350,000.......actual appraised value means nothing since the loan amount is 725,000-350,000=375,000 mortgage. 350k equity on an appraised 725k property is a lenders dream deal.

 

[mavric1298]

Not sure where you stand equity wise but example:
lender wants their mortgage secured by 20% over the mortgage amount.
mortgage 100,000.....appraisal 125,000(even though you think your worth 150,000)....lender is happy, you're not. So what? You get the deal done.
see this on high end lake michigan properties all the time.
offer is 800,000....appraisal 725,000......buyers putting down 350,000.......actual appraised value means nothing since the loan amount is 725,000-350,000=375,000 mortgage. 350k equity on an appraised 725k property is a lenders dream deal.

Thats what we were thinking, as long as we are below the 20% equity to loan, it doesn't matter it came in low.

Even more of a rub on the whole situation, we just got a letter saying our current escrow is going to be short, because our tax assessment went up again. According to chase our home is loosing value, according to the state, its gone up both of the last two years since our purchase by a significant amount. Its fun being told we owe more money because our house is worth more, while being told its worth much less at the same time. I get appraisal and assessment are different, but the juxtaposition is just staggering.