Refinance Question 75% LTV

[Michael Brant]

Hi BP! I'm relatively new and did some searching but I didn't find any answers and was hoping someone could help me out (or point me in the right direction).

I have a 1 small bedroom in Hoboken NJ (across the river from NYC) that I just placed a tenant in. My wife and I bought this apartment to live in, but never planned to rent it. I am looking to refinance it from 4.375 and just received a great rate with minimal cost in terms of points/fees.

My question is.. I owe ~$285,000 on the unit, and the appraisal when we bought in 2017 was $391,600. My concern is appraisal *.75 LTV is worse than what we owe on it. (that it appraises for something less than $382,827.29 (285,000/ .75) If that makes sense.

Am I thinking about this correctly? What else should I be asking?

Edit: Also if it does appraise lower, do I have to go through with the refi? are there any adverse affects of this? The loan officer suggested asking my agent for comps and if the comps are good I "should be fine" but I want to make sure this is the case.

Thanks so much!