In most refinancing scenarios, you’ll need to get an appraisal to gauge the market value of your home. This assessment is based on an in-person evaluation of your property conducted by a professional, and research into other nearby properties that are comparable in size and condition. The results of this appraisal will determine whether you qualify for a refinance (if you owe more than your home is worth, you might not), the interest rates your lender offers you, and if you’ll need to pay PMI (private mortgage insurance) on your new loan.
If you are only refinancing to change your interest rate or loan term, the rules are slightly different. You may qualify for a no-appraisal refinance option like the FHA Streamline, USDA Streamline, and Veterans Association Interest Rate Reduction Refinance Loan (VA IRRRL). Just keep in mind that the mortgage you’re refinancing must be an existing FHA, USDA, or VA loan. Curious to see how much you could save by refinancing? Check out rates and see which terms you qualify for today.
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