I posted a few weeks ago about how my fiance and I were looking to refinance the condo.
Well we finally got out appraisal back and the news isn't so hot. Instead of the $155k we were hoping to get, our appraiser valued the condo at $150k. Boo. And so off in my humble opinion. Based on comps and improvements we've made I think our value should be at least $160k.
But the appraiser 1) used comps from older buildings; 2) used comps from our building for units that have not done any remodeling. We have a brand new kitchen and hardwood floors whereas the other units have old kitchens and carpets!
We are in the process of challenging the appraisal but if worst comes to worst we have to come up with close to $5k to cover the closing costs ourselves.
It totally sucks but I know in the long run getting a mortgage rate 2 points less than our current mortgage rate will save us a lot of money.
Updates to come!
1 comment:
During the bubble-days, there were some appraisers who were in the back-pocket of unscrupulous lenders who trumped up the value of the home. Now that lenders are tight-fisted, I wonder if appraisers are evaluating low? Hmmm... Anyhow, good luck. I'm sorry you didn't get the news you wanted to hear.
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