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Old 02-28-2011, 08:30 PM
 
58 posts, read 250,863 times
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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?
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Old 02-28-2011, 10:05 PM
 
Location: Louisiana
290 posts, read 492,540 times
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Quote:
Originally Posted by ommatidia View Post
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?

Last edited by Greeenback; 02-28-2011 at 10:22 PM.. Reason: Grammar
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Old 02-28-2011, 10:16 PM
 
11,642 posts, read 21,574,718 times
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Quote:
Originally Posted by ommatidia View Post
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.
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Old 02-28-2011, 10:17 PM
 
Location: Laguna Niguel, CA
768 posts, read 4,133,919 times
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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.
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Old 03-03-2011, 11:24 AM
 
Location: Living on the Coast in Oxnard CA
16,271 posts, read 28,679,463 times
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Can I ask why you decided to go through the pain of refinancing this early?
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