Consider the prices of homes recently sold in the neighborhood
Chicago, IL (PRWEB) May 17, 2015
As current homeowners look at the best mortgage refinance rates now that interest is low, they should pay attention to the value of their home. Lenders like The Federal Savings Bank will usually request an appraisal, homeowners should make sure their house's worth is accurate. Lenders typically want to see homeowners owe 80 percent or less of their home's value when refinancing. Before mortgage refinancing, homeowners should have a ballpark of their own property value.
Here are three tips to estimate home value:
1. Compare nearby homes
Similar to finding a home when they first want to buy, homeowners should look at additional prices of properties in the area. Consider the prices of homes recently sold in the neighborhood and determine whether they had the same characteristics that could help influence their worth. For example, you could search for the price of homes with the same the number of bedrooms and square footage. Also follow any reports about overall changes in housing prices in the metro area or state.
2. Ask a mortgage broker
While homeowners could simply send in their refinancing application without talking to professionals, the insight they may gain from their mortgage broker or loan officer will be essential for estimating home value. Homeowners should talk about their home's characteristics and discuss how to best calculate the property's value.
3. Use online tools
There are many calculators that homeowners can use to compare properties or get an estimate of their home through home valuation websites. Through using these websites, homeowners can get a better idea of whether home improvements increased their home worth. With these online tools, people looking into refinancing can see whether their home price is in line with what they originally thought.
Current homeowners who want to refinance can contact The Federal Savings Bank, a veteran owned bank, to learn more about the best mortgage refinance rates.