About a month ago, we started the refi process on our house. We are refinancing to a 15-year loan for a 4.5% rate. The rates just became too low to look away any longer. Last week, Wells Fargo sent out our appraiser and we crossed our fingers things would go well. Under normal circumstances, I know our house would appraise very well...but this market throws a wrench in things. We have done major work in our house in the six years we have owned it so help the resale. We have updated the kitchen, rebuilt a larger backdeck and renovated our backyard completely, we have even replaced all the plumbing in our house. And yes, I have kept a spreadsheet of everything we have done over the years and their costs (sorry, that's the geek in me).

The refi really hinges on the appraisal. When we purchased our house, we had a big enough down payment to avoid PMI. I have had a few friends refinance their house only to have the house not appraise high enough (given the market). So the amount of equity in the house doesn't make the 20% and they had to pay more to avoid PMI or be stuck paying PMI. We have lived in this house for six years and always done biweekly mortgage payments to pay down principle quicker so I was hopeful the appraisal would not diminsh that.

Wells Fargo called this week saying our appraisal report has been completed and the refi is now moving along. As she talked, each sentence seemed longer and longer as I waited to find out what the house appraised for. Thankfully, our house value did go by 10% since we have purchased it. Should have been much more in a normal market but I can let go of that until we actually need to sale. As for the refi, going up is good! So now the process moves on....