Loans and Appraisals?
Answers:
Since you will not be tapping into as much of your homes equity your LTV will be 62% borrowing $80,000. You can do one of 2 things
1) Ask for a lower rate, based on your loan to value you may not be informed of this possibility unless you ask for it. Cash out refinances are priced at LTV by most lenders, less then 75% LTV and less then 60% LTV. If you lower your loan amount to $78,000 you may get an even lower rate on your loan.
2) Increase your loan a little higher and put some big improvements into your home. Home improvements are big tax write offs, especially energy saving improvements. Tank-less water heaters are big in CA right now, they have rebates to help in most area's as well. Adding insulation into your home, water saving landscaping, new appliances, and many other items will improve your homes value while adding a tax break on the remodel and the interest you also pay for the higher loan amount is a tax write off. Take into consideration the pros's & con's and make your choice before talking to your loan company. They will advise the higher loan amount, they are paid off the loan amount so they will urge you to increase it.
Other answers:
If you are still borrowing only 80,000 nothing will change.I have never heard of that before.Usually better rates come with good credit.
If you are still borrowing only 80,000 nothing will change.I have never heard of that before.Usually better rates come with good credit.
The information they gave you was based on the LTV (loan to value) they were giving you. The amount of your loan needed to come in at at least 80% to the value of your home. With your home appraising at the higher amount, your LTV will now be closer to 60%, thus you should get a better rate.