Crown Point, IN · Member since 2018 · 56 posts · 23 votes
I am looking to refinance an existing HELOC to increase the line of credit. The home has a 27 year old but still working furnace.
Will I get dinged on the appraisal enough to make it worth changing the furnace ahead of time? In other words, will my line of credit be limited by the old furnace by more than what a new one might cost?
Im not otherwise concerned about it breaking since I have other ways to heat the home.
also A/C is only a few years old. Not concerned with it.
Lender · Irving TX, Bonney Lake WA · Member since 2024 · 4 posts · 0 votes
2y
In most cases, it would not come up in the appraisal process for a HELOC. Most lenders are going to use an automated valuation or desktop appraisal. The only scenario I could potentially see it being an issue is if you requested a full appraisal to be completed for a higher value. At that point, an appraiser would check to see if it operating as designed.
Crown Point, IN · Member since 2018 · 56 posts · 23 votes
2y
Ok, thank you. After speaking with the bank, I may be DTI limited instead of LTV limited anyway. Even if an appraisal were to fall short of ideal, its not likely to matter.
Rental Property Investor · Philadelphia, PA · Member since 2021 · 774 posts · 501 votes
2y
@Rich Bultema - Just from my experience I have not had an appraiser impact the value for an older heater/air conditioner, however, a heater without A/C (as an example) has impacted an appraisal on a single family home. Good Luck!
Crown Point, IN · Member since 2018 · 56 posts · 23 votes
7mo
Oh, this was an old thread that just got resurrected but since I'm here, I might as well follow up with what actually happened.
At first, it was sounding like based on DTI, I may not have even been able to complete the HELOC refinance. After I or the loan officer realized I had retirement savings that were not included so far in the application, I sent retirement account statements over to them.
Afterwards, they offered me a ridiculous high line of credit on just a drive by appraisal. Never entering the home, the age of the furnace never came up in the process.
My now 29 year old furnace still humming away in the other room.