Refinancing in today’s credit-crunched market can be challenging. A successful refinance all begins with the appraisal, used to set the maximum amount you’re allowed to borrow against your home. The problem is, in today’s market, sinking home values are often lowering appraisals as well. If you are considering refinancing your home, consider values of home's in your area. Keep in mind that an appraisal is not what it would cost to replace your home if it was destroyed but what other home's that are similar to yours are selling for in your market area. Heeding these important tips on appraisals before proceeding can improve your refinancing options and save you time and money: