Need new appraisal if refinance 6 months after purchase? (loan, fee, refinancing)

[ommatidia]

The lender has put an appraisal fee into the GFE. I am refinancing 6-7 months after my original purchase. I read a few posts saying that the original purchase price is taken as a reference if refinance is within the 1st year. Is this correct? My original loan is 30 year FHA. Is there a legal document I can refer to?

[Greeenback]

Originally Posted by ommatidia

I read a few posts saying that the original purchase price is taken as a reference if refinance is within the 1st year. Is this correct?

Original purchase, or prior purchase to the current refinance? Neither one, in your case, is taken as 'direct reference' to what market value is. It is an economic trail of activity that is considered to be noteworthy in Appraisal Practice. Its 'meaning' will usually pop up later on in the Appraiser's scope of work.

What if you didn't purchase at market value; what if you already owe more than what the house is worth? What will your next step be?

Are you refinancing through bank, mortgage broker, another primary source?

[Momma_bear]

Originally Posted by ommatidia

The lender has put an appraisal fee into the GFE. I am refinancing 6-7 months after my original purchase. I read a few posts saying that the original purchase price is taken as a reference if refinance is within the 1st year. Is this correct? My original loan is 30 year FHA. Is there a legal document I can refer to?

We took a jumbo loan in July and refinanced with the same bank in December and the bank required a new appraisal. I don't think there's any legal document in your old loan that would say anything about this issue.

[ShanetheMortgageMan]

When refinancing within 1 year, the value that lenders will use is often the lessor of the purchase price or the appraised value. Thus an appraisal is still required, because if the appraised value is less than the purchase price then the appraised value is used as the home's value.

[SOON2BNSURPRISE]

Can I ask why you decided to go through the pain of refinancing this early?