Mortgage News - Appraisals and Your Homes Market Value

Real Estate Agent with Keller Williams Realty - Ballantyne

Will your listing appraise for the value on the sales contract? 

Will that appraisal pass mortgage underwriting? 

With tighter mortgage industry guidelines, thoroughly check comparable sales to support your list price BEFORE you put it on the market.  The usual factors like location, size, and quality are still important.  Make sure you can support the price with at least 4-5 comps that 1) are in the immediate subdivision of your listing (don't expect comps from other neighborhoods or across busy intersections to fly through a review), 2) sold within the last 4-6 months (yes, it used to be within the last 12 months).  Home Improvements will likely be valued at a fraction of the cost.  If comps are out of the ordinary in any way, be prepared for "PUP" (picky underwriter pushback) and have this homework ready for discussion.   Loans over 1M and some conforming ARMS require appraisals to go through a 2nd underwriting review or require an entire 2nd appraisal so they must be rock solid.

Rates increased over the last couple of weeks due to inflationary concerns and investors preferring treasury bonds to MBS (mortgage backed securities).  Less money in MBS means less to offer borrowers, which causes a rise in rates.

Here's a sample of Primary Home Purchase money rates today, 0+1, with escrows for a borrower with median credit of 720.  These are subject to vary based on loan amount, occupancy, LTV, credit quality and other factors. 

Conforming (using 250K as amt)             

30 yr fixed                                6.25%

15 yr fixed                                5.85                                                                                                

5/1 ARM, 30 yr am                     5.375%


Jumbo (using 650K as amt)                                                                              

30 yr fixed                                7.625%                                                             

15 yr fixed                                6.75%                                                    

5/1 ARM, 30yr am                      5.875%


Super Jumbo (using 1M amt)              

30 yr fixed                                7.625%

15 yr fixed                                5.75%

5/1 ARM, 30 yr am                    5.375%

Compliments of Ashleigh Sumlin, Bradford Mortgage Company, Charlotte NC - 704-373-2289




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