Be unrealistic about your home's value2 of 7Deluding yourself about the value of your home is an excellent way to ruin a refi. Too many homeowners ignore falling home values in their neighborhood, convincing themselves their houses are worth at least what they paid for them.In mortgage refinances today, the most common reason for denial is a home appraisal that comes in too low. The lender won't lend for more than the appraised value. And a lot of homeowners go into denial about the decreased values of their homes."Don't overestimate what the value of your home is. Don't kid yourself and think your house is worth $500,000 when it's really only worth $400,000," says Dale Robyn Siegel, author of the book "The New Rules for Mortgages" and owner of Circle Mortgage Group in Harrison, N.Y. Related Articles:Conventional refinance?'Cash-in' refi takes offLow score = high paymentLow cost refinanceRelated Links:Refinance home or move?How to kill a loan closingMortgage calculatorBest mortgage for you? advertisement
Deluding yourself about the value of your home is an excellent way to ruin a refi. Too many homeowners ignore falling home values in their neighborhood, convincing themselves their houses are worth at least what they paid for them.
In mortgage refinances today, the most common reason for denial is a home appraisal that comes in too low. The lender won't lend for more than the appraised value. And a lot of homeowners go into denial about the decreased values of their homes.
"Don't overestimate what the value of your home is. Don't kid yourself and think your house is worth $500,000 when it's really only worth $400,000," says Dale Robyn Siegel, author of the book "The New Rules for Mortgages" and owner of Circle Mortgage Group in Harrison, N.Y.
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