You cannot refinance your house if..

[Complex]

You cannot refinance your house if you are underwater

found this on Redditt forum 

"Buy the house, date the rate" is an MLM tier misleading sales pitch

If you bought a house for 600k at 6% rates with the hope to refinance in 1-2 years, but in those 1-2 years the appraised value of your house has dropped to 500; unless you have that 100k equity in the house you cannot refinance

[Kurrodu1]

4 minutes ago, Complex said:

You cannot refinance your house if you are underwater

found this on Redditt forum 

"Buy the house, date the rate" is an MLM tier misleading sales pitch

If you bought a house for 600k at 6% rates with the hope to refinance in 1-2 years, but in those 1-2 years the appraised value of your house has dropped to 500; unless you have that 100k equity in the house you cannot refinance

why would appraised value go down? Appraisal value decided from the facts like how much other comps valued and sold. That history will not change no. Unless the house was damaged somehow.

[Complex]

7 minutes ago, Kurrodu1 said:

why would appraised value go down? Appraisal value decided from the facts like how much other comps valued and sold. That history will not change no. Unless the house was damaged somehow.

Residential appraisals (excluding multifamily) are done by looking at area comps. Jump in demand + lack of inventory = bidding wars which result in high comps.

High comps = high appraisal

Now, we have a lot less demand. Less demand + increasing supply = home prices decrease.

Low comps = low appraisal

It's already happening. Things will get worse.