Refinancing initial quote vs final pricing

[Ben M.]

I am in the middle of a cash out refinance and was told my rate would be locked. However, the final closing cost is 4k above the initial quote. The rate did get locked but the origination fee went up 2k from the initial quote and they said this is because rates are going up drastically. Does this make it right for them to raise the origination cost by 2k though? Their original quote also only had 2 months of prepaid taxes and the final quote has 7 months of taxes and this also added another 2k. Was this a bait and switch tactic? It is probably common with lenders?

[Cristian Toaca]

Texas licensed lender here.

Not very fair practice for a lender to not honor their locks.  I would look into it further. Decent practice is for the locked rate to be honored no matter how aggressively the rates go up. (Assuming transaction closed on time without the need to be relocked).

Let me know if you have any questions.