Appraised Value
Definition of 'Appraised Value'An evaluation of a property's value based on a given point in time that is performed by a professional appraiser during the mortgage origination process. The appraiser is usually chosen by the lender, but the appraisal is paid for by the borrower. |
|
Investopedia explains 'Appraised Value'The appraised value of a home is an important factor in the loan underwriting process and plays a role in determining how much money may be borrowed and under what terms. For example, the loan to value (LTV) ratio is based on the appraised value.In general, if the LTV is greater than 80%, the lender will require the borrower to buy private mortgage insurance. However, if the LTV drops to 78% upon a new appraisal, private mortgage insurance payments may be eliminated. |
Related Definitions
Articles Of Interest
-
Understanding Your Mortgage
We walk through the steps needed to secure the best loan to finance the purchase of your home. -
4 Steps To Attaining A Mortgage
It starts with knowing your choices as well as your price range. We show you how to get there. -
Understanding The Mortgage Payment Structure
We explain the calculation and payment process as well as the amortization schedule of home loans. -
10 Reasons Why Moving Might Not Make You Richer
Find out why moving to a less expensive city may not reduce your expenses. -
6 Things You Think Add Value To Your Home - But Really Don't
Not everyone wants to spend their weekends shaping backyard topiaries. Even though you may enjoy the improvements you make to your house, it doesn't mean that they'll increase its value. -
What You Should Know About Home Appraisals
Home appraisals are an unbiased way to determine a home's value. Here is what you need to know about obtaining one. -
Tips For Transferring A House Title
Transferring a house title can be complicated at times. Here are some guidelines to help you get through the process. -
How To Avoid Overpaying In A Real Estate Bidding War
Some real estate markets are experiencing bidding wars because of low interest rates and shrinking inventory. Find out how to avoid overpaying if you find yourself competing for a house. -
11 Hidden Costs Of Owning A Home
The cost of buying a home extends beyond the down payment, closing costs and your mortgage. Watch out for these costs. -
How To Challenge A Low Home Appraisal
If you're unhappy with your home appraisal, here are some steps you can take.
Free Annual Reports