Can refinance rate increase due to an apprasial reviewed by the mortgage underwriter?
I was told that my rate has gone up from 3.875 to 4.25% because the underwriter decided to lower the apprasial of my house from 85k to 80k, and was explained that it creates more risk for the loan. It just doesn’t make sense to me. The rate 3.875% had been locked-in; however I believe the loan officer is not doing his job promptly and had to extent the lock-in rate (if that can be done). I do not know whether it was done as his next update was the rate has gone up due to the underwriter decision. I don’t believe $ 5000 difference of a house would cost a increase in the loan rate. I think the rate is a result of the market rate going up. I am considering to rescind it.