Does a cash-out refinance require an appraisal?
Usually yes. A lender requires an appraisal to establish the property's value as collateral for a purchase, refinance, or home equity loan, and the borrower typically pays the cost as part of the financing. For credit-union loans, federal rules require a full appraisal only when the residential loan is $400,000 or more; smaller loans may use a written estimate of market value instead.
Yes. FHA requires an appraisal for most refinances, and only streamline refinances and Title 1 loans are exempt, so a cash-out refinance includes a full appraisal. The borrower usually pays for it, and the report typically comes back in about a week.
Sources: Indiana PLA: real estate appraiser licensing information (applications, fee schedule, renewal); Indiana Real Estate Appraiser Licensure and Certification Board (PLA): home page.