Can anyone help me figure out if I should walk away from a refinance application or accept a counteoffer?
I live in New York, and am trying to refinance with TD bank. My original mortgage is with CITI. TD offered lower rates than CITI. However, since their appraisal shows a lower value than the one on the contract, they have made a counteroffer. The amount for the refinance was $338,000 (including closing costs).The home value on the contract is $460,000 and the appraisal shows a value of $405,000. The counter offer they are making has these terms: refinance 324,000 and offer 20,000 in a home equity loan. What do I need to consider in order to make my decision? If I walk away, I know I have to pay the appraisal fee ( I am hoping they won't make me pay any other fees, like the rate lock commitment fee) At the moment I pay $18000 to Citi and, before the counteroffer, TD was offering a monthly payment of $1560. I am leaning towards walking away but I am afraid of the rate lock commitment fee.
Thanks,
enrrikm
