Cash-out refinance after rehab

[Rahul D.]

Hi All,

Last year I purchased a home that was in good condition but very dated in term of finishes. Since then, I've spent a substantial amount of time and money in remodeling the home; essentially a full rehab of the home with high end finishes, plus the addition of a full bathroom and finishing of the basement.

At time of purchase, I employed a broker to help secure the mortgage. And now that the property is completely updated, I am looking for a cash-out refinance. I am hesitant to use the same brokerage again as they had appraised the home at about $40k below market value when I purchased it last year. Although that was a favorable appraisal in a purchase situation, as the home was appraised close to purchase price (which was under market), I currently want to ensure that the property is now appraised at the highest possible price for the cash-out refi.

I wanted to get some insight as to whether you all think my concern is warranted. This broker is offering me the best rate, however I don't want to jeopardize my max cash-out value for a slightly favorable rate. I would appreciate any thoughts and insight. Thanks!