Is that true that if you need to refinance your house you need to fix it first?

Alicia
No. Its not like your trying to sell it. When you refinance you are pretty much replacing your mortgage for a better loan, usually for at a better rate and even a lower payment, You'll still owe whatever you owe but with a better rate you'll not have to pay as much interest over time. The value of your house does not need to be reassessed usually so fixing it will not be needed. Before you do any type of refinancing thoroughly research what you are doing and make sure it will for sure save you money in the long run.

Claretha
yes if there are structural problems or if it just plain looks bad, but for the most part, no, if its just acouple of small holes in the sheetrock or something that can probably be fixed for under 3 or 4 hundred dollars.What the new finance company is going to be looking at is whether or not the house will sell as is for the amount re-financing it for in the case that you default on the loan in a week or a month or whatever, do you see what I mean?

Daria
Well, yes, the house has to have value before someone will finance it. This seems like common sense to me. Ask yourself...would you buy a used car that was dirty, had flat tires, ratty carpeting, leaky roof? No you would not. A lender is looking for collateral with value in case of default..it would do the lender no good to have a house it could not turn around and sell. As far as I know, an appraisal IS necessary if you plan to use a lender other than the one which has the 1st mortgage. Clean it up.

Dario
huh? where did you get that?

Alec
no!!!

Alia
If the lender is going to have an appraiser appraise the house as a condition of refinancing, probably yes.