What does the term "Original Appraised Value" mean on a home loan?
Answer:
Every mortgage document is a little different.
But the original appraised value typically refers to the value of the property at the time of the initial mortgage being agreed upon.
This may be important later in the documents in relationship to insurance requirements for the improvements (buildings)to the property (land).
When you refinance the mortgage company will also refer to the original appraised value to determine if the value at the time of your new application has increase (improved your equity) or decreased.
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Has the process taken a while? Sometimes appraised values expire after 3-6 months, and a recertification is required.
An appraisal was done at the time you financed. The term relates to the appraised value at that time.
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