You don't need an appraisal!

Many Lenders require an appraisal. By far, this is the biggest misuse of this program to date. All it does is add cost without any real benefit to the consumer.  FHA/HUD does not require it and we rarely have a case where it really makes sense. Most lenders require them for 1 reason, and 1 reason only. 

It allows them to charge HIGHER closing costs.

That's right, the only reason for an appraisal on a FHA Streamline Refinance is so that closing costs can be added into the loan.  Recently, because of the housing market, we've had numerous people fall for this "option" only to eventually be denied for the loan because the value had fallen over the period of a few months.

It's just wasted money.

Don't pay $400 for an appraisal, just so that some lender can charge you an extra $4,000 in fees.