You always hear them talk about it – property value is on a constant rise. This given, you are aware that your home is now more valuable than before. You are aware that it is now mortgaged under its current value.
Now you want to know its estimated value. But you don’t know where to go and from what you heard, an appraisal analysis is generally expensive. Now you’re wondering if there is any other option left.
Yes, there is. You can try a comparative market analysis. It’s much cheaper than an appraisal. Now what’s the difference between the two?
The Difference between an Appraisal and a Comparative Market Analysis
An appraisal is a calculation of your home’s value at a specific time and is done by a certified appraiser. When determining your home’s approximate value, the appraiser takes into account the land area in square footage, your home’s design, the quality of construction, and the location of your home. The appraiser also considers the neighborhood, the availability of transportation, and schools and commercial areas, as well as the landscaping and view.
A comparative market analysis, on the other hand, is a more informal estimate of the market value of your home. A real estate agent performs his analysis by simply using the sales of other comparable homes in the vicinity as a point of comparison.
You Still Have Another Option
But wait, you still have another option. Yet again, you can rely on the Internet for this. It’s called a Home Value Calculator. This tool is only good for informal estimations, though. Your certified appraiser and real estate broker are still more reliable in terms of getting the estimated value of your home.
What do you need these estimations for, anyway? Are you interested in getting a refinance home? If so, then you must try a mortgage calculator. This tool will help you figure out the amount of monthly payments you will have to pay for with your refinance home.
The tool also includes in its equation the Private Mortgage Insurance or PMI for a refinance home with less than 20% as down payment. Also included are the town property taxes and their consequent effect on your monthly payments.
Do not Take Your Refinance Home for Granted
Now that you have started to look into the matter, why don’t you delve into it even further? There are still a lot that you need to learn, like which is better – a fixed rate mortgage loan or an adjustable mortgage loan? And would it pay to have lower interest rates and monthly payments if it would mean extended mortgage terms? Also, would it be wise to consolidate your numerous debts into your refinance home? Would it be worth the risk of using your home as collateral?
Your refinance home is definitely not a simple matter and is not something you can take for granted. After all, you have your most valuable asset on the line. So go on ahead and investigate before making a decision.