Home Appraisal
A home appraisal is an independent professional's estimate of a property's market value, ordered by the lender to make sure the home is worth what you're borrowing. If it appraises below the purchase price, the lender won't finance the gap — a common deal snag.
The appraisal protects the lender, not you: it exists to confirm the collateral is worth what is being borrowed against it. That is why a low appraisal is the buyer's problem — the lender will finance a percentage of the appraised value, not of the agreed price, so a $350,000 offer appraised at $335,000 leaves a $15,000 gap. The options are renegotiating, covering the difference in cash, disputing the appraisal with better comparable sales, or walking away if the contract carries an appraisal contingency. The same logic governs refinancing and HELOCs, where the appraised value sets how much equity you can access — and a value below expectations can reintroduce mortgage insurance.
Put it to work
Mortgage Calculator
Estimate your monthly mortgage payment with taxes, insurance, PMI and HOA — plus total interest and a full amortization breakdown. Free, fast, no signup.
Home Equity Calculator
Calculate your home equity and how much you could borrow with a HELOC or home equity loan, based on your lender's combined loan-to-value limit.
Mortgage Refinance Calculator
Should you refinance? Compare payments, find your break-even month on closing costs, and see the honest lifetime cost — including the term-reset trap.