Refinance appraisal guide · Hampton Roads
Your house hasn’t moved. The value question has.
When you refinance, your lender evaluates the home securing the new loan. A current appraisal, when required, develops an independent opinion of value based on the property and today’s market evidence.
Joseph T Ellington Jr – Licensed Residential Appraiser
What is changing?
Start with the reason for your refinance.
A refinance replaces an existing mortgage with a new one. The lender’s valuation requirements depend on the loan and program, not simply on whether you believe the home has gained value.
Changing your loan
You may want different terms, a different rate, or a different loan length. Ask the lender what valuation it needs and compare the full loan costs—not just the monthly payment.
Borrowing against equity
A larger replacement loan may provide cash at closing if you qualify. Available equity and lender limits matter; an appraisal cannot promise a particular cash amount.
PMI or another loan
Removing PMI or seeking a home equity product follows different lender or servicer rules. Check those rules before ordering an appraisal yourself. See our PMI removal guide.
The number lenders watch
How does home value affect a refinance?
Loan-to-value, or LTV, compares a loan amount with the property’s value used by the lender. It helps the lender evaluate how much of the home’s value the new loan would represent.
For illustration, a proposed $320,000 loan divided by a $400,000 value equals 80% LTV. The lender decides which value and loan amount apply to your transaction, along with its other eligibility rules.
An appraised value is an opinion supported by market analysis. It does not determine your interest rate or guarantee loan approval. Read the CFPB’s LTV explanation.
Before you order anything
Will the lender need an appraisal?
Ask your lender. Some eligible loans may receive value acceptance, meaning the lender can use an eligible valuation route without a traditional appraisal. Other loans require an appraisal or a different property data and valuation process. Eligibility is the lender’s decision.
Fannie Mae uses “value acceptance” for what many homeowners still call an “appraisal waiver.” See Fannie Mae’s current explanation.
Ask what valuation the lender requires for your specific refinance and whether it has already placed an order.
Let the lender control its order. A homeowner-commissioned appraisal is not automatically usable for that lender’s loan file.
Clarify your purpose. If you want a separate opinion for your own planning, Joe can discuss a private appraisal with that intended use.
For lenders and AMCs: Capital Valuations handles residential assignments in Hampton Roads and the Peninsula. Send the property, scope, and deadline to discuss coverage.
The appraiser’s job
A report should explain the value.
When an appraisal is ordered, the appraiser considers property facts, the applicable inspection scope, comparable sales, and market conditions as of the effective date. A kitchen renovation may matter, but its cost does not automatically become an equal increase in market value. See how appraisers choose and analyze comparable sales.
Property details worth gathering
How should I prepare for a refinance appraisal?
Help the appraiser verify facts and access the property. The market evidence, rather than a requested number, drives the value opinion.
Have ready
- A list of completed improvements with approximate dates and permits where applicable.
- Information on additions, conversions, or finished areas that public records may not describe correctly.
- Access instructions for the house and relevant areas; secure pets.
- Documentation that helps explain notable property features or changes.
Keep in mind
- A contractor’s bill does not prove how much buyers will pay for an improvement.
- Online estimates and tax assessments can differ from a current appraisal.
- The inspection scope may vary by assignment; an appraisal is not a home inspection.
- Ask the lender or AMC about its timeline and how you will receive your report.
If the value surprises you
Check facts before asking for a reconsideration.
A lower value can change the lender’s loan-to-value calculation or proposed terms. It does not, on its own, show that the appraisal is wrong.
- Request and read the full report, including the property description and comparable sales.
- Document a specific factual mistake or relevant sale the appraiser may not have considered.
- Give the information to your lender and ask about its reconsideration of value process. A separate appraisal review may help you understand a report, but lender acceptance remains its decision.
For a first-lien mortgage application, the lender must provide the applicant a free copy of its appraisals and other written valuations. See the CFPB’s guidance.
Bring verifiable property facts and relevant sales—not a target value.
Common refinance questions
Before you refinance
Can I order the appraisal myself and send it to my refinance lender?
Ask your lender before paying for anything. A private appraisal can serve your own planning, but the lender controls the valuation process for its loan and may not use a report you commissioned.
Does every refinance require an appraisal visit?
No. The lender may have an eligible value acceptance option or may need an appraisal with an assignment-specific inspection scope. The lender decides which route applies to your loan.
Will remodeling costs be added to my home’s value?
Not dollar for dollar. The appraiser looks at the property and market evidence to determine how buyers respond to improvements. Bring documentation so the completed work can be accurately described.
Will a high appraisal get me a lower interest rate?
Not automatically. The lender sets rates and loan terms using its underwriting requirements. Value may affect the loan-to-value calculation, but the appraisal does not set a rate or guarantee savings.
Is a cash-out refinance the same thing as removing PMI?
No. A cash-out refinance replaces the existing loan with a larger one if approved. PMI removal on a current loan follows the servicer’s rules and may not require refinancing. Read our PMI appraisal page and ask your servicer which valuation it accepts.
What if I need an appraisal only to understand my current equity?
Explain that purpose when you contact Joe. A private appraisal can inform your own decision, though it will not automatically replace a lender-ordered refinance valuation.
Use the right guide
More help from Capital Valuations
Local residential valuation
Hampton Roads and Peninsula service area
Explore local appraisal information for the city where your property is located:
Refinancing or planning ahead?
Tell us what decision the value needs to support.
Lenders and AMCs: send the property address, assignment scope, and deadline. Homeowners: check with your lender about its required valuation first. If you want a separate opinion for your own use, tell Joe your purpose and the property address.
