Then you should know that many lending professionals believe World Savings undervalues
homes by 10% or more...
What does that mean for you? Higher interest rates & less cash out.
- A lower appraised value means some people were provided 2nd Mortgages when a larger 1st Mortgage based on a higher appraised value would have been sufficient
- These unnecessary 2nd Mortgages are at higher interest rates and therefore cost you more money every single month
- Lower appraised values mean you may not have been able to get all the cash out you needed--or still need--to consolidate debt or for any other reason
- Lower appraised values can mean individuals in Option Arm, Pick-A-Pay or Neg-Am programs may have been given higher-than-necessary 'Start Rates'--often over 2%
- Lower appraised values result in a higher 'Loan to Value'. This is an important Risk Factor
Bankruptcy Chapter 7
lenders use in determining interest rates. Higher 'Loan to Values' are considered riskier and are therefore given higher interest rates