Mortgage Strategy
How Appraisals Affect a Refinance Outcome
Your appraisal determines loan-to-value (LTV), and LTV influences rate, approvals, and whether PMI can be removed.
If appraisal comes in high
- Lower LTV can improve pricing.
- Potential PMI removal opportunity.
- More flexibility for cash-out requests.
If appraisal comes in low
- Loan terms may worsen.
- You may need to reduce cash-out goals.
- PMI removal may be delayed.
Planning step: model refinance math with conservative home value assumptions before counting on best-case appraisal results.
How to prepare for appraisal
- Share recent comparable upgrades/improvements.
- Ensure home access and condition are presentation-ready.
- Have records of material updates available.
Run Refi Scenarios Before Appraisal