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appraisal of home

I am applying for a mortgage refinancing with the same company I had. I did some home improvements thus far, will an appraisal do me favor, in what ways? Will it affect my APR offer? by jinkytot from Philadelphia, Pennsylvania. Aug 1st 2010 Reply


Leo Harvey (LHARVEY)
#7 ranked lender in Pennsylvania - 142 contributions

An appraisal will be required for a re-finance, even with the same lender. The value that is reported will serve to adjust the loan to value ratio (LTV) and could affect the final APR that the lender offers because there are risk adjustments made to rates that are based on LTV. Generally a lower LTV will result in a lower cost loan or lower APR to the borrower. These adjustments are commonly done on conventional Fannie/Freddie loans. You should look into other lenders for offers also as your current Lender has to go through the same qualification process for your new loan whether you are a current customer or not.

Aug 2nd 2010
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Clarence Ford (clarence.ford)
#27 ranked lender in Illinois - 4 contributions

Some improvements are considered value added improvements, bathroom and kitchen updates are generally considered as such. Installing a roof, siding, doors and windows are often times considered as maintenance and do not bring as much in value. This has nothing to do with annual percentage rate. Your APR is the annual cost of the loan as expressed as a percentage.

Aug 1st 2010
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Richard Woodward (RichardWoodward)
#41 ranked lender in Texas - 106 contributions

Even with the same lender you would more than likely need a new appraisal. There are a few programs that do not require a new appraisal. You would benefit from a new appraisal if the new appraisal provides a substantially higher appraised value because your new loan to appraised value would be lower and could enable you to secure a lower interest rate.

Aug 2nd 2010
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Christopher Stancato (Kyle Stancato)
#3 ranked lender in Washington - 63 contributions

If you are not taking cash out and it is a fannie mae or freddie mac loan there is a strong possiblity you dont need to waste the time or $ on an appraisal. Let me know if you have questions,Kyle StancatoBayview Home Loans253-460-6000

Aug 2nd 2010
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Rudi Hofmann (CaPortfolioLoans)
#278 ranked lender in California - 380 contributions

Very little probably as to value. Will not change your fees for APR calculation.Happy funding, Rudi

Aug 2nd 2010
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