Question: We had an appraisal done on our house prior to refinancing. But the mortgage broker has turned out to be a flake and we’re switching to someone else. Can we take the old appraisal (which we haven’t even seen yet, though we’ve paid for it) to the new lender, or do we have to get the house appraised again? (We started remodeling right after the original appraisal, and now the house is in construction hell.)
Second: newbie question: what’s the difference in meaning between the interest rate and the APR? How do we interpret these two items?
Thanks.
Answer: Our lender told us we could use an appraisal for up to a year. If we want to refinance, just use the <12 month appraisal. However, I don’t know if this is the same for your lender seeing it is a different lender than the originator of the original appraiser.
As far as the APR question, jump on any web search engine and look up “Lending Disclosure”. There are dozens of sites that explain very clearly and quickly just what the differences are between APR and the interest rate. You will have your answer in 5 minutes tops.
We just had the same question and obtained the answer this way. I would give you my .02, but I am afraid I could not explain it nearly as thoroughly. Moving your appraisal is a tricky thing on several fronts, first has an appraiser been to your home and performed the appraisal? How long before construction was this done? Have you determined which broker/lender you plan to use? Have you asked your new broker will they or even more important, the lender they plan to use will accept the appraisal?
Had you considered a remodelling loan before you started the construction?
Generally your broker will be able, in most cases, arrange for a reissue of appraisal. THAT IS IF, the time frame is generally not more than 60-90 days from the original date of appraisal to submission to lender. Then after that and up to six months a recertification of value or new appraisal may be required.
The essential differences between interest rate and annual percentage rate is as follows: the interest rate is the rate at which your note is charged interest, while the APR is the ‘net’ rate which is net of costs which are associated with the loan. As such, that is a reason you will see a spread between the Interest Rate and the APR, a lower amount is used to calculate the APR.
Some borrowers look at rate as it is what they will be paying over the long haul, while others look at the APR, which reflects the costs involved in getting the mortgage. As for which you need to watch out for is a matter of preference. One is for low rates, while the other is for low costs.. you will need to determine which you prefer, the cost has to be paid one way or the other, either in rate or fees.
Any other questions, do not hesitate to drop a note.
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