We recently started a refinance process with Bank of America. We wanted to refinance into a 15 year fixed rate loan with a interest rate of 3.75%.
James Stennett, a loan specialist, told us that we would need an appraisal of at least $160,000 to meet the requirements. I think ok no problem...I understand the price of homes has declined but we paid well over $160,00 for our home and our current listed value as of this month was $171,000 which is still well under what we paid for it.
Bank of America sends out their appraiser and while he is here I get papers in the mail from Bank of America with my appraisal amount listed in there as $165,000. I called James and asked why I would pay $450 for an appraisal if he hasn't even performed it yet and they already have the appraisal amount. Oops...that was just a automated letter that is sent out, they just guestimated what my home is worth.
So a couple more weeks pass and I have no word on what my home appraised at even though I was promised that I would have a hard copy of the appraisal within 4 days, so I call once again. Now I'm told that my house has appraised at $153,000 and I don't qualify for the refinance but they can work out some different options for me.
The best part of the whole deal is that I still get to pay for a credit check and the bogus appraisal to the tune of $485.00. To add insult to injury James Stennett took the time to explain to me that my homes value was an average of 3 homes that have sold in the "area", not in my development that were smaller than my house. He explained that I did get a little credit for my house being bigger than the ones they compared it to. I wonder why they didn't average in the house that is on my street that is the exact same size as mine that sold for $188,000 this month. Guess they could be honest with their consumers and tell them they are going to pay $450 for a appraisal that is basically just them making up numbers so they have an excuse to charge you a higher interest rate. They are crooks and I truely believe that they just stole my hard earned money.
Product or Service Mentioned: Bank Of America Mortgage.