Home Appraisals and Refinance Home Mortgage Loans
October 11th, 2008 by admin
Is there a difference between a home’s appraised value and it’s assessed value? Yes. This is a fairly common point of confusion for those looking to refinance home mortgage loans.
A home appraisal is conducted by an individual qualified by education, training, and experience, to estimate the value of real property. A large part of an appraisal is actually performed on the computer, using comparable and recent sales values of similar homes in the subject home’s area. The appraisal qualifies the borrower’s Loan-to-Value ratio and can be a major factor in determining refinance program eligibility.
A home’s assessed value is the valuation placed on the property by a public tax assessor for purposes of taxation. Assessed home values are normally lower than an appraised value and cannot be used for the purpose of refinance home loan qualification.
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