Why is my bank ordering an appraisal on my property?
I have a commercial building. I am current on the first and delinquent 3 months on the second. Wells Fargo holds the second mortgage and wants to do an appraisal. Is this because they hope to foreclose?
Thanks for the question.
If Wells Fargo holds the second mortgage on your commercial building and you have been making late payments, or have fallen behind, they are likely pursuing some type of action which would include foreclosure proceedings. Before they initiate a foreclosure, they'll want to get a better estimate of the value of the building, so your instinct is likely right, that they are ordering the appraisal in order to pursue the foreclosure process.
At this point, you should contact Wells Fargo directly, if you have not already done so. Since you are current on your first mortgage, you are clearly showing an intent to maintain the property. By contacting Wells Fargo, you'll give yourself an opportunity to explain your situation to them and try to work out some type of modified repayment plan that will allow you to keep the building. If you don't contact them, and their appraisal indicates that there is equity in the property, then they will likely pursue the foreclosure.
Thanks again for your questions and good luck - contact Wells Fargo today!
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The Latest on Mortgage Rates
Mortgage rate fluctuations should come as no surprise. If you are buying a home or refinancing your existing mortgage, it is important to stay informed about the current mortgage rates.
Mortgage rates February 14, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of February 14, 2024 stands at 6.64%. This reflects a 13 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
Additionally, Freddie Mac reports that the 15-year mortgage rate for February 14, 2024 is 6.12%, indicating a 22 basis points increase from last week’s rates.
What does the mortgage rate mean for you?
Mortgage rates play a vital role in determining your monthly payment. Let's take a look at the avergage interest rates (APR) for February 18, 2024 based on Zillow data for borrowers with a high credit score (680-740) in the United States:
- For a 30-year conventional loan, the interest rate is 7.03%.
- If you opt for a 15-year conventional loan, the interest rate stands at 6.19%.
Using the rates mentioned above, a $279,082 30-year-year mortgage would result in a monthly payment of $1,862. On the other hand, a 15-year mortgage would require a monthly payment of approximately $2,384.
Simplify your mortgage journey: Shop around and get pre-approved today!
To make the home-buying or refinancing process a breeze, we highly recommend shopping around for mortgages and getting pre-approved. So, why not Check Out mortgage rates now for the best options available.