refinance

Refinance anew but avoid a new appraisal?

Don TaylorDear Dr. Don,
If I have recently completed a refinance, can I refinance again using the appraisal I obtained just two months ago?

Thanks,
-- Roxanne Refi

Dear Roxanne,
It doesn't hurt to ask, but it isn't likely to work. The bursting of the housing bubble changed the rules concerning appraisals. The lender doing the refinancing will almost certainly require a current independent appraisal of your home.

While not all mortgages have a seasoning requirement, which refers to the length of time the loan has been in place, if yours does, your existing mortgage may not have seasoned enough for you to be able to refinance again so soon. Review your loan documents or talk to your lender before you start filling out mortgage applications.

For the refinancing math to work, you have to capture enough in interest savings to cover your closing costs. Even a no-cost loan has its closing costs baked into the interest rate. Being able to use the prior appraisal would have lowered the bar in terms of making the refinancing worth it. But if you need to be able to use the old appraisal to make the refinancing decision work, then you're cutting things too close.

Featured Rates

Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter.

Ask the adviser

To ask a question of Dr. Don, go to the "Ask the Experts" page and select one of these topics: "Financing a home," "Saving & Investing" or "Money." Read more Dr. Don columns for additional personal finance advice.

Bankrate's content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate's Terms of Use.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
HOME EQUITY STRATEGIES & ADVICE NEWSLETTER

Advice for homeowners looking for options to use their home’s equity wisely. Delivered monthly.

advertisement
Partner Center
advertisement

Connect with us