Look at all that equity
January 23rd, 2008 by KenricI got this from Countrywide yesterday. Do people really refinance for $12,133? Let’s see, I pay $3,000 closing costs to get a $12,000 loan. Hmmmm. I wonder what the minimum equity is needed for you to get a letter like this. $5,000?
On a side note, maybe I should be worried because I calculate that I have alot more equity than $12,000 on that property. I wonder it this is based on 80% LTV and what value they have assigned to that house.
Posted in Real Estate | 1 Comment »
Stumble it!
Countrywide and many other lenders use a Zillow-like AVM to estimate the value. It uses some very conservative assumptions, and I’m pretty sure it considers your purchase price. I have had Countrywide servicing on several loans and gotten some laughable offers like the one you received. Sometimes I would get two letters on the same house within a few weeks with very different equity “estimates.”
The purpose is to get you to pick up the phone and make that call. It’s a cheap way to generate sales leads from a pool of qualified prospects. Unknowledgeable homeowners might be impressed by a value estimate to the nearest dollar and call to find out how the lender got that number.
By Another Investor on Jan 23, 2008