Appraisals used for Cash-Out Refinance

1 Reply

I'm researching cash-out refinancing for some properties that I own free and clear. I've done some poking around in the forums and see the main challenges you have experienced with doing this:

1. Seasoning period: 6 months, and sometimes up to a year

2. Sometimes the the cash-out is based on the purchase price rather than the appraisal.

I haven't found much information yet on the actual appraisal so I have a few questions. My properties are located in Michigan state:

1. Does the appraisal often come out pretty close to the comps? Or is it common for properties to get under-appraised?

2. Is there usually a minimum appraisal value for a cash-out refinance? For example, if I have a SFR with appraisal of only $30K, will some banks refuse to do it?

Thanks for your help!

1. Does the appraisal often come out pretty close to the comps? Or is it common for properties to get under-appraised?

2. Is there usually a minimum appraisal value for a cash-out refinance? For example, if I have a SFR with appraisal of only $30K, will some banks refuse to do it?

Thanks for your help!

Hello Diana, to answer your first question, if the comps are the most recent and have similar square footage, bedroom and bathroom count, same style...etc they it should be close.

To answer your second question, PM me with the details on city of the property, what you are looking for as far as cash out, what you believe the value of the property is, what date and year you purchased the house, and what was the purchase price.  I work with several money lenders and can run it by them for ya.

Lance

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