I tried to refinance our home but the appraisal was lower from the original amount. Why is that so?

Answer 1

You probably bought your house around 2002, when it was an inflated sellers market.

Mortgage companies got buyers all sorts of adjustable rate mortgages (ARMs) so they could afford to pay for the overpriced properties.

Unfortunately, the companies did not tell the buyers that the prices would drop in a few years, when it's time to refinance.

This is a trend that has been happening since the Depression. Home prices spike up, and then fall by 20% or so and they stay there until the next cycle (8-10 years).

Answer 2

You haven't given us too much to go on. How long ago was the original and what market conditions have changed. Was the original a good eval?
Did you buy when it was a sellers market (Higher house values) and now it is a buyers market(lower house values.
Did you take out a 90 or 100% loan and now you want a line of credit (80% of value max)

Provide some details and maybe we can come up with better answer.

Answer 3

The housing market is slumping right now in many areas. That means sellers are having to reduce their price to get the house sold. When an appraiser goes out to gather "comps" or comparable sales of houses in your areas, they were sold for lesser amounts and therefore, the appraisal comes in lower than expected. Add in foreclosures and sheriff's sales and that only compounds the problem.

Answer 4

Your appraisal went down via fact the final marketplace value of properties has long previous down throughout the rustic. regrettably, the financial corporation isn't interested in what you think of the home is nicely worth - they choose to comprehend what they might sell it for in case you do no longer pay your man or woman loan. i'd touch an area realtor and ask them to grant you an predicted value so as which you would be sure if struggling with is even nicely worth it. additionally, that's no longer a solid theory to apply your place as a piggy financial corporation. purely circulate forward with this in case you will no longer be able to locate yet differently to pay off the charges. undergo in strategies, unpaid credit enjoying cards can cut back to rubble your credit, and an unpaid automobile mortgage potential you're taking the bus, yet an unpaid loan potential you haven't any longer any domicile. in case you will no longer be able to get an appraisal to get the quantities you go with, then locate different the thank you to diminish your funds and improve your earnings so which you will pay off the indoors maximum loan.

Answer 5

Instead of refinancing, you may be able to get a HELOC. It is like having your own bank. You could check with a mortgage broker for that. I know of some if you need referrals. Also, you may be interested in this new program. It works well with a 30 year mortgage. I am currently using a HELOC with a new software program that helps build equity fast, and will payoff my home in less than half the time without refinancing, and without extra payments. It is saving me thousands in interest, and pays off home in less than half the years. E-mail me if interested.

Answer 6

Appraisals are subjective to some degree. Maybe the market changed or it was not the same appraiser

Answer 7

Work with a private finance broker vs. the bank.
Might cost a point or 2 more, but you are far from out of options.

Answer 8

No idea.

Try another one:

http://www.vancouverfinder.org/business/no-income-verification-home-equity-loan.html

Hope this helps,

Answer 9

or the value of your property may have dropped, thus the lesser valuation.