Most people have not heard of refinancing with an appraisal being done. To be honest, I did not know this was an option until recently! It saves both time and money if you are able to refinance without an appraisal. Keep in mind that not all lenders have this as an option.
Appraisers do play an important role when it comes to purchasing a home. The appraisal is what tells the lender how much the home is valued at so they know if they are making a wise investment or not.
There are a handful of ways you may be able to skip the appraisal from being done. There are a few lenders, like Fannie Mae and Freddie Mac, that have waivers available. These waivers are usually only for applicants that are considered to be a strong applicant. These waivers are pretty uncommon but they do exist. The borrower must have at least 20% equity and the home not valued more than one million. The higher the credit score and amount of income will help an applicant as well.
There is also a program called the Streamline Refinance program. This is a program that is offered by government-backed loans. These types of loans are specifically available to help a homeowner save money by lowering your mortgage rate. While the government may not require an appraisal for these types of loans, it is possible that your lender may still require it.
There are some lenders that offer specific loans that give you the opportunity to obtain an appraisal waiver. While appraisal waivers are not common, there are some situations where it is possible. There are a lot of things you have to do in order to qualify, but if you are able to go through all of the red tape and meet all requirements, it will get you out of having to have an appraisal!
As you can see, although it is not common, it is something that may be possible. Not having to have an appraisal will save time, money, and cause less stress!