Appraised Value Loan Options - Chicago

[Ben Stewart]

Hi All,

Does anyone have a local lender that will lend on appraised value? I'm looking at Chicago south suburb SFHs buy and hold 15-30 year fixed and was curious if any lenders even have that option available.

Thanks!

[Chris Mason]

For a purchase mortgage? Dodd-Frank did away with that.

Refi? Sure.

How to game this? When you buy it knowing you're going to refi in 6 months, the rate is irrelevant, closing costs are more important. Have them jack up the rate, the goal is sufficient negative discount points to cover all closing costs on the purchase mortgage, that way you aren't paying 2 sets of closing costs, just the 1 set when you refi.