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April 7, 2009
Appraisal Question
I'm trying to figure out if we're likely to be able to refinance without taking on PMI. Does anyone have a real sense of how appraisal values have changed in the last year or so? The city says our place is worth 595, Zillow says 750 and I'm not sure I want to gamble the 500 or so it will cost for the application fee without a better idea of what my chances are. Any thoughts? We're right off the Myrtle Ave. JMZ and have a 5000 sq. ft. building in good repair.
Comments
Don't know how your area is appraising - nor how commercial buildings work, but we just had an appraisal on our house in bay ridge for a lot higher than we expected - actually a bit higher than the last sale on the block a year ago - before prices started to dip.
PMI as I understand it, kicks in if you don't have 20% down.
If you have more than 20% of the value then you should be free of that burden
The more pertinent question becomes what is the property worth in today's market
Posted by: rickintheridge at April 7, 2009 7:04 PM
That is exactly the question. We put 20% down originally, but are probably only at 22% now(a little under a year in). I'm trying to figure out if values have come down enough that by refinancing we'd be taking on PMI and if the refi would still be worthwhile(we would be going from 5.6 to 4.375). For clarification it is a three family building, not a commercial property.
Posted by: bunkerlabs at April 7, 2009 7:24 PM
It really depends on who the bank uses for the appraisal. I would ask them where the appraiser is located and how much experience they have with your area. We refinanced earlier this year and our bank used a Long Island appraiser who didn't know the area well, came up with some really wacky comps and appraised it so low (more than 500K less than the city estimate, and our place is in good, well-maintained condition) it would have jeopardized our refi if we'd had anything close to an 80/20 LTV.
So an accurate appraisal cannot be assumed. You might want to research a few comps on your own, to see if values in your area are holding up so far.
Posted by: petunia at April 7, 2009 10:12 PM
hope someone more familiar with your area weighs in on values. good luck!
Posted by: rickintheridge at April 7, 2009 10:14 PM
I do to!
Posted by: bunkerlabs at April 7, 2009 11:23 PM
the 3 c's. Close, current, clone. then, what is your property's competition? What is the short sale, REO and foreclosure rate of 3 family in the area? Does your building suffer from external obsolescence? Did you obtain subprime financing or receive any concessions from the seller?
Posted by: Springs at April 9, 2009 7:00 PM
Externally we're fine, the forclosure rate near us seems to be pretty low in relation to say Crown heights or E New York. The financing was very much above board, and we had put 20% down.
Posted by: bunkerlabs at April 10, 2009 12:40 PM
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