What can disqualify you from refinancing your home?

A low appraisal is the main appraisal-related barrier: lenders generally will not approve financing above a home's appraised value, and they use the appraisal to set your interest rate, required down payment, and whether the loan is approved at all. Lenders generally look for loan-to-value (LTV) ratios of 80% or less, so if your home appraises lower than expected, you may need more equity or cash to close the refinance.