We bought our home two years ago. TTCU the credit union is whom we have our loan with. Appraisal was 96.000. We narrowed 67.000. Mind you we also put down 17.000. We bought it after renting it over 20 years. We got it for 85.000. We wanted to remortgage at a lower rate 2.9% now its 5.0. Quicken Loans are now telling us. It'd in a flood zone.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
5y
@Ronda Botts You're only required to get flood insurance if the property is located in a Special Flood Hazard Area (SFHA), AND you have a mortgage loan on the property that is federally-insured (or your lender requires it).
(All flood zones beginning with the letter “A” or “V” are considered SFHAs.)
If your lender didn't require it before, it's likely that your property wasn't in a SFHA at that time, or your previously mortgage wasn't federally-insured. Now that you're refinancing, either the flood maps have changed and your property is now in a SFHA, or you're refinancing into a federally-insured mortgage. Either way, you'll need to factor that into the cost of the refi and decide if the refi is still worth it.
Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
5y
Flood zones can change, and did drastically after some of the recent hurricanes (Harvey) in the Houston area. This is creating a lot of expenses for new owners and making it harder for sellers in those flood zones as buyers and investors do not have any interest in paying the higher rates.
We bought our home two years ago. TTCU the credit union is whom we have our loan with. Appraisal was 96.000. We narrowed 67.000. Mind you we also put down 17.000. We bought it after renting it over 20 years. We got it for 85.000. We wanted to remortgage at a lower rate 2.9% now its 5.0. Quicken Loans are now telling us. It'd in a flood zone.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
5y
@Ronda Botts You're only required to get flood insurance if the property is located in a Special Flood Hazard Area (SFHA), AND you have a mortgage loan on the property that is federally-insured (or your lender requires it).
(All flood zones beginning with the letter “A” or “V” are considered SFHAs.)
If your lender didn't require it before, it's likely that your property wasn't in a SFHA at that time, or your previously mortgage wasn't federally-insured. Now that you're refinancing, either the flood maps have changed and your property is now in a SFHA, or you're refinancing into a federally-insured mortgage. Either way, you'll need to factor that into the cost of the refi and decide if the refi is still worth it.