My house appraised for far less than what I owe!?

Posted on Mar 8, 2013 in HARP Refinance

Question by Priscilla B: My house appraised for far less than what I owe!?
I am currently refinancing and the appraisal has come back as more than half of what I owe on my property. I ‘m so shocked and confused. I knew it was going to be low but I didn’t expect it to be more than a 50% drop! What should I do? should I cancel the refi and do some upgrading to the house or continue?

Best answer:

Answer by Go with the flow
Upgrading? I would have thought of paying down the mortgage instead.
Funny how different minds can work.

Sounds like you should continue as you are if paying down a mortgage is not something you would consider doing.

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5avg.rating 27 votes.


  1. Drop the notion of any refinance at this time. You can do numerous ‘upgrades’, but none of them will raise the value of your house 50%. The ONLY way to heavily increase the value of the house is to add square footage to the property (as in an addition) and even THAT will not return your monetary investment in increased valuation. Sorry. Welcome to what is happening to MANY.

  2. It doesnt matter , just keep living their and eventually you will own the property.Its value will go up and down , but it is only relevent when you want to sell.

  3. Living in a mobile home does have it’s disadvantages, but don’t despair. Ask your neighbors if they have the same thing happen then if they did, pick up and haul your trailer to another part of town. Doing renovations always adds to the life of your home provided it’s done right.

  4. With the 50% drop in the price, what is your current equity.
    If you still have equity and you can refinance the amount that you wanted to refinance, you probably do nothing except continue with the refinance.
    – If you aren’t selling the house, it really does not matter what this appraisal says.

    If you no longer have the equity allowed to refinance you, read the appraisal to confirm it is accruate. If you don’t think it is, you refut it and explain why (for example: comparable house #1 is not comparable because of ….)
    If it is an accruate appraisal, most likely I would do nothing and continue paying the current mortgage.
    If you want to refinance then you are going to have to put cash into the loan (until you have 20% equity) not into the house and continue with the refi…

  5. People talk about their investments loosing money or gaining. Well, that’s true only on the day you sell or buy.

    You do have to live somewhere. So one’s home really isn’t an investment until you go into a nursing home for good.

    It’s very similar to life insurance. There’s no “life” in this kind of insurance since you will never see it.