I recently refinanced my home mortgage and was able to avoid paying a home appraisal fee due to the Quick Value Option assessment of my property value during the application process.
The home appraisal fee for my refinance would have cost me $400 up front, before I was even approved for my loan, so the Quick Value Option is ideal if your bank offers a similar option.
What Is The Quick Value Option?
The Quick Value Option or QVO (as my own Johnson Bank refers to it, but other banks may refer to it by a different name) is an automated underwriter (mortgage underwriting software) that does an electronic valuation of your property.
Per the qualifications for my bank, if your loan-to-value ratio is 75% or more, based on your Quick Value Option assessment, then you will need to get a physical home appraisal, which costs $400.
However, if your loan-to-value ratio is less than 75%, based on your Quick Value Option assessment, then you will not need to get an appraisal, and you save $400.
The loan-to-value ratio compares the amount of your loan to the value of your property.
Please note that these specifications may vary with different banks, so ask for details before you submit an application.
How To Avoid Paying Refinance Appraisal Fee
Before you submit an online application, you should contact your potential bank to check if they have an option available to avoid the appraisal fee.
If they do offer a way that you can avoid an appraisal fee, then find out the specific qualifications that you will need in order to meet the requirements.
If you can avoid the appraisal fee with a certain loan-to-value ratio, then you can double-check if you will qualify before submitting an application.
However, the automated underwriter assessment will not necessarily be the same as your other property assessments, like your city property assessment, so there is no way of knowing for sure how your house will be valued by an automated underwriter before applying for a refinance and going through the process.
Even so, if your loan-to-value ratio is extremely close to the qualifying percentage that is needed to avoid an appraisal fee, based on your city property assessment, then it may be worth paying off some of your mortgage principal during the refinance process in order to lower your total new loan amount.
This way, you can be sure that you meet the loan-to-value percentage requirements during the automated underwriter’s assessment, so that you can avoid paying an appraisal fee.
You may also be interested in these Loan Promotional Offers if you are considering a loan.
Avoid paying an appraisal fee on your mortgage refinance with the Quick Value Option.