There are tons of folks who want to refinance their house in NC – but don’t think it will appraise for what they owe. Did you know that there are SEVERAL programs available that do NOT require an Appraisal? If Fannie Mae or Freddie Mac have your mortgage – you can get a loan for more than 125% of what your home is currently worth!
Does this mean you can get Cash Out of your home up to that amount? No.
But, if you have a mortgage loan that has a balance that is higher than what you owe on your property, you might be able to refinance that “higher” balance and save money every month on a lower mortgage payment! Sweet!
For those who currently have a Conventional loan, the program allowing for this no appraisal refinance is a HARP loan.
Does this mean that as long as Fannie and Freddie own your mortgage, and you have a Conventional loan with no late payments in the last couple of years (clean credit, etc) you can refinance with NO appraisal – 100% of the time? No, unfortunately there’s not a steady rule about that.
The reduced documentation refers to “in many cases.” Fannie Mae and Freddie Mac will often (about 70% of the time, in my experience thus far) give an Property Inspection Waiver (PIW). That simply means that Fannie/Freddie have enough information on the property to be comfortable estimating the value of the property, without the need for a full appraisal.
That is a major step in reducing the documentation needed; and helps to reduce cost as well. In that situation, we do not collect an appraisal fee upfront, and the $375 appraisal fee stays in the homeowners pocket.
However the misconception out there is that no documentation is needed. Others have heard that there are no closing costs for the HARP 2 refinance for North Carolina homeowners.
Unfortunately, neither of those things are true, but it still might be time to Refinance your Mortgage in NC.
Homeowners still need to credit qualify to do a HARP 2 refinance, meaning they need a 620 credit score or better and cannot have been late on the mortgage payment in the past 12 months.
And, other than the appraisal if a waiver is given, the other closing costs apply. Additionally, in NC, we are required to verify that you have employment and can make your mortgage payments. So, folks who are on unemployment (for instance) would not be able to take advantage of the HARP 2.0 loan program.
We can give you a mortgage rate quote with no to little closing costs out of your pocket, and we will generally give our quotes WITH a small amount of closing costs (usually an escrow that you are going to get refunded) and one with NO closing costs.
So, the truth is that the North Carolina HARP 2.0 Refinance loan (with no appraisal) closing costs are similar to every other conventional loan. But, that is okay if the refinance helps you save $200 or $400 or $500 per month on your mortgage payment. That sort of savings is typical of what I am seeing, and it pays for the closing costs that were rolled into the new loan in no time.
Want to find out if you qualify for the HARP Refinance Program? Contact us Today! Steve and Eleanor Thorne,NC Mortgage Experts 919 649 5058. Looking for today’s best mortgage rates in Cary and Raleigh? We also offer no appraisal refinances for:
Still wondering if it’s time to Refinance? Call us! 919 649 5058