If appraisal report shows less value than actual house value refinance is a best option? please guide me?

Ismael
I bought my house 14 months ago at interest rate 6.5 and second lien at 9.25. Now I am doing refinance, new appraisal report home value shows $15000 less than purchased price. so Its missing 80 or 85% equity line.I locked at 5.25% to refinance for first lien, in this case is it worth doing refinance?To meet 85% equity line, I have to make a down payment around $20, 000.My home zip code is 75056Please guide me.

Lanelle
The actual value is the appraised value. You have to refi both liens, not just one. Pencil out the total costs of refinancing and not refinancing for you for the next 10 years (or how ever long you intend to live in the house) to see if makes sense for you do do it or not.

Charis
The economist that I put my faith in, Harry Dent, says that home prices are headed to 1996 levels in about three years. If he's correct, and of course nothing says he is, then from strictly a money standpoint, you'd be better off saving the $20, 000, selling the house, and buying it back at the end of 2012 for a lot less than today's appraisal.Houses of course are also homes, so if you love the neighborhood, the neighbors, the schools, then it's a different equation.

Hilda
The actual vaule is the appraised value and it sounds like your upside down in your home loan. Not much you can do to refi.