Refinance Home

[laawaaris]

I am trying to refinance my home to take advantage of the lower rates and consolidate my 1st + 2nd mortgage into one. My bank sent an appraiser to look at the house and what he came back with was a bit shocking.

The appraisal came back for $20,000 less than what I bought the house for. I could not believe it !!! I know we are in a housing crunch and banks are watching their backs, but is it really that bad?

What exactly is going on in the housing market right now? Are everyone's house prices dropping by a really large dollar figure? I might have to find another bank to get an appraiser just to match what the first one said.

[SCone]

More than likely it's the bank being a little too AR.

[DigiSLR]

If you're appraised value of your home really has declined, have your property and school taxes decreased as well?

[gmarblestone]

wow i didnt think this was affecting houston/sugarland
...
scary

[kenw]

Yes, it is affecting everyone. Try a different appraiser/bank, or look around hcad.org for a look-see into what the appraisals are doing in your area. Compare by square footage, not just price. It may give you some ammunition.

And if you have been in the house only a few years, you most likely will see some depreciation as housing prices were a bit high relatively speaking (even for this area) a few years ago.

Sugar Land would seem to be especially vulnerable due to the rapid expansion lately.

We refinanced twice over the years, once to drop the payment only (30 yr and lower interest) and the 2nd time to drop the payment and shorten the term (lower interest and 20 year note). Ours will be paid off in November of this year after 21 years.

[JamesB]

i though the appraised value only affected your taxes.

when its time to sell, the market will determine the value you can sell it for.

I did not think the appraised value would affect your interest rate when trying to refinance.

maybe im wrong...... but i do need to refinance my home as well to get a lower rate

James

[jblaze5779]

I would think that's a good thing unless you plan on selling soon. Less taxes is always welcome.

[laawaaris]

This house is in Houston, Harris County.

I think the appraised value by the bank determines how much loan they will give you. If they appraise the house at 80K, but you need 100K to refinance, you'll be short 20K.

I checked and I paid taxes on an a Harris County appraisal value which is slightly higher than my purchase price. I think something fishy is going on with this bank - I'm going to call them and show them my Harris County appraisal.

[Cope]

Originally Posted by laawaaris

This house is in Houston, Harris County.

I think the appraised value by the bank determines how much loan they will give you. If they appraise the house at 80K, but you need 100K to refinance, you'll be short 20K.

I checked and I paid taxes on an a Harris County appraisal value which is slightly higher than my purchase price. I think something fishy is going on with this bank - I'm going to call them and show them my Harris County appraisal.

HCAD appraisals do not impress anyone except HCAD, City of Houston and HISD. I had the same problem 3 years ago when I did a re-fi. My mortgage company changed lenders and got a more sympathetic appraiser.

[STP Images]

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[kenw]

You can protest taxes online for no cost. Do your homework, tho.

www.hcad.org

[laawaaris]

thanks for the details everyone!

[Buddha]

What Paraquat said is right. You can ask the bank for a copy of the appraisal to get an idea of what similar houses are going for now. Since they payed for the appraisal, they might say no, though. Try telling them that you want to protest your taxes and they might be more helpful. You should do that, too.
Your alternative is to look for a different lender who will also require an appraisal to be done.
You might call a local title company ask them for their monthly statistics. That lists the average selling price by area, which could be useful information. If the statistics support your case, try a different lender and make sure their appraiser is local.