It's all in the valuation. A homeowner needs to find out the current value of the home and compare it to the amount currently owed on your loan or if you have a second loan, the total amount of both loans. If the value is at least 15 to 20 percent higher than what is owed, a refinance is possible without having to bring in a down payment.
There are several ways to obtain a good valuation. Some homeowners hire an appraiser at a minimum cost of $400 or higher depending on the size of the property. While this will help you to know the value, it is a costly way to go because most lenders will require their own appraisal conducted by someone off of their approved list and you will be required to pay this cost again.
A less costly approach a homeowner can choose to do before contacting a lender is, to check the sales comps in the neighborhood and see what similar homes have sold for in the past 3 to 6 mos. This can be done by going to the San Diego County Assessors office and looking up specific homes in your neighborhood that have sold recently or the quickest and easiest way is to contact a local realtor who can access that information via the local Multiple Listing Service.
Remember, whether you look up the sold comps yourself or use a realtor, be sure to consider homes that are similar in condition and amenities, are close in square footage and lot size and are built within 5 years of the home in question.
To help add value to your home, be sure it is presented in the best condition looking well maintained both inside and out. Be able to point out any upgrades such as a new roof, windows or water heater and not just the cosmetic upgrades. This will all help you to towards the goal of getting the highest value possible to qualify for refinancing.
So, with these few tips, I hope you as a homeowner will be one of the lucky ones to take advantage of these historic low rates.
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