I agreed to pay Quicken loans $400.00 which included the appraisal. I wanted to refinance to lower my interest rate and to remove the mortgage insurance. They sent out an appraiser.
The house next door was being appraised on the same day by a different company. Our homes are very similar but mine is 125 square feet smaller. The appraiser that Quicken sent out appraised my home $41,000 less than the home next door.
Quicken's appraiser used comparables from the other end of town (small town) near the steel mill (low income area). I live on the east coast 2 blocks from Winyah bay and the park that is located on the bay. My neighbor's house was appraised by the buyer and that company used comparables from homes on the Marsh which is less than 2 miles from my home (same distance as the homes my appraiser used) and a much better neighborhood.
Quicken loans told me to come up with comparables. I waited for the house next door to close and I used it and two homes from the area near the marsh. The appraiser refused to reconsider my appraisal.
Quicken loans still offered to do business with me but based on the bad appraisal they wanted to increase the interest rate and refused to remove the mortgage insurance. I felt that I would be really stupid to go with this option when I knew my home was worth a lot more. I asked for a new appraisal which they refused and would not refund any portion of the $400.00.
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