Posted on: 16th Jan, 2009 04:44 am
I started building my home in Phoenix in 2007 and it was initially appraised at $750k. at start of construction. I completed it in May of 2008 and moved in. The loan is for $398k 5 /1 arm at 6.75%. Now that the fixed rates are much lower and not knowing what the future holds I would like to refi to a 30yr. fixed. The problem is that I had it appraised by a different appraiser with a different lender and they claim it is now worth only $385k and want me to come up with 40k cash for the deal. I don't have that. All I want to do is refi to a 30 yr. for the current balence. What are my options?
Well the fact that it appraised for 1/2 of what it was supposed to is raising a question as to how inflated was the initial appraisal. What do you think the house is worth today (reality check) as compared to similar homes sold in the area. Get a copy of the appraisal (if you paid for it you are entitled to it) and see what comparatives they used. If you think this is way off and your house worth much more then talk to a different lender. (preferably local and one you trust ).
It could be you are biased to the value of your home.
It could be the builder overstated the value.
It could be the market in the area really bad w lots of foreclosures.
If the value is there you can refi if not that you stuck
It could be you are biased to the value of your home.
It could be the builder overstated the value.
It could be the market in the area really bad w lots of foreclosures.
If the value is there you can refi if not that you stuck
Something just does not seem right. I know values have declined a bit but not by half. As Eugene mentioned, you should get a copy of that appraisal. In fact, the law states that you have a right to get a copy of it. Check recent home sales in your area too.
