The Mortgage Refinance Appraisal: What to Expect

Nearly every refinance requires one — here's how the process works.

Why refinancing requires an appraisal

Lenders need current appraised value to confirm the loan amount is appropriately backed by the home's actual worth, protecting both the lender and, indirectly, the borrower from over-borrowing.

How the appraisal is typically ordered

Most lenders order appraisals through an appraisal management company (AMC) rather than letting you choose the appraiser directly, to maintain independence in the valuation.

What happens during the visit

The appraiser measures the home, documents its condition, and compares it to recent sales of similar nearby properties to arrive at a value estimate.

What can affect your appraised value

Recent comparable sales in your area, home condition, upgrades since your last appraisal, and overall market trends all factor into the final number.

If the appraisal comes back lower than expected

You typically have options including requesting a reconsideration of value with additional comparable sales data, or adjusting your refinance terms — talk to your lender about your specific options.