tl;dr: I was criminally screwed by everyone involved in the purchase process of my home a few years ago but have no legal recourse (and could lose everything if I even try). I need to get my home appraised (it’s value has soared in lockdown) so I can stop paying PMI and refinance to cover a new roof (and possibly leveling) for this old one story house. But the screwing I got from the realtors, mortgage broker, and inspectors has left me feeling like I can’t trust anyone involved and like a single wrong move will be held up as proof of my incompetence.
I’m confused about where to start, and totally paralyzed by the question of who to trust and how to find people for the work (of the reno or the loan work). I believe I would do better with a contractor or specializes in old houses (this one is around 114 years old) rather than someone used to working on new construction, but I don’t know how to find those professionals.
On with the numbers:
* At purchase, the house was valued at 230k by the bank, 250k by real estate. It is now worth something like 350k to 380k.
* I have 187k in principle left on my mortgage and pay 4.25% interest.
* Currently paying PMI, but I am ~3k away from being PMI free. 🙂 I have very good to excellent credit. I can pay these 3k now, but if I’m getting an appraisal, I think it’s better to let that knockout my PMI?
* My mortgage is held and services by Wells Fargo, their current estimated interest rates on a refi (w “no cashout”) are 3%
* If the bank’s appraiser says 350k, then I could take about 90k more and stay below that 80% figure. I can afford the added monthly payments and the 90k would cover the renovation we want (based on the worst case estimates I’ve gotten from draftsmen and a contractor I know).
So now what?
Do I call WF and ask them to send an appraiser out so I can ‘lock in’ this new property value and ditch my PMI asap – and then start the process of refinancing for the new roof/renovation separately?
Or do I go straight to refinancing for the renovation (getting the appraisal done as early as possible to drop PMI)?
And just how do I get this refinance for renovation to happen – is there a good guide that isn’t affiliated with a realtor or a bank? At this point I don’t trust banks (who have all the power) or realtors (who lied to my face and bragged about that while buying a round in the town bar).
Honestly, I think I need a professional to help me move through the process (financing and permitting and contractors). But how do I find someone I can trust to act in my best interests?
Can I trust the NRIA?