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PSA: Don't ignore the appraisal gap when doing a cash out refi
I almost learned this the hard way last month on a house I bought in Raleigh 3 years ago. Thought I had 80k in equity easy, but the appraiser came back 15k lower than Zillow said. That messed up my LTV ratio and I had to bring cash to closing. Anyone else get burned by relying on online estimates instead of a real appraisal?
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jordan33020d ago
Yeah Zillow was way off for me too, totally screwed my numbers.
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holly_green8215d ago
My agent told me to ignore Zillow and look at recent sold comps within a half mile instead, and that saved me from the same problem you and @jordan330 had. On a duplex I refinanced last year, the online estimate was 20k high, but the actual appraisal came in right around what the comps showed. I started checking county records for actual sale prices in the neighborhood before I even request an appraisal, and that made a big difference.
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