Definition
When refinancing, you need a fresh appraisal to determine the current value of your home, which affects how much you can borrow. It's the same process as a purchase appraisal, just for an existing loan.
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Find my pathAbout this term
Refinance appraisals similar to purchase appraisals. Determines current value. Refinance amount based on appraisal. Equity calculation uses current value. Low appraisal limits refinancing options. Professional appraisal required by lenders. Cost typically $300-600. Assessment affects refinance decision. Value increase enables cash-out refinancing. Value decrease limits options. Professional guidance on refinance decision valuable. Appraisal timing affects decision.
Pro Tip
Get an appraisal before refinancing to know if you have equity to tap through a cash-out refinance.
Example
Refinance appraisal at $500,000 (vs. $450,000 purchase price) enabled larger cash-out.