With the extraordinary increase in home values over the past 2-3 years, most people gained a lot of equity in their homes and land. I am now seeing a lot of people coming in to refinance; some to take equity out, others to eliminate PMI (Private Mortgage Insurance). I closed loans recently for two separate clients who wanted to pull some cash out of Chelan building lots, each of which had more than doubled in value. (Yes, you can refinance a building lot).
More commonly, people are pulling modest amounts of cash out their primary or investment homes for remodeling or to payoff other debts. Several clients who purchased homes with 100% financing 2 years ago are now getting cash plus eliminating PMI, with their new loan under 80% of the appraised value.
For clients who just want to get their PMI removed, who want to keep their current loan, they should contact their current lender to check the procedure. The lender will probably have you pay for an appraisal. In general, you will need to have their loan balance under 78% of the new appraised value to get it removed.
This is all a result of recent great gains in equity, and continued low mortgage rates.
In the Leavenworth, Chelan and Wenatchee markets this is also a busy time for construction loans as people want to get their foundation poured before the ground freezes up. Most builders are holding off starting new spec homes this fall, so some great builders are available to build custom homes.
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