Home Mortgage Rate Change

[Dylan W Broussard]

Would appreciate any insight as this situation is somewhat unique and I need to make a decision quickly. We are borrowing 300k and are locked in at 3.875% (locked in July) to close on a home in 3 days. Spoke with our broker this morning and he is now able to get us a 3.625% + appraisal fee ($450) and 15-20 days to close as option 1 or 3.5% + appraisal fee ($450) + point fee ($700) and 15-20 days to close as option 2.

This is a long term home for us so financially (break even within two years on the extra fees) its worth it to go for the lowest rate but I was wondering what the risks are of starting the process over? We are living with in-laws so going from 3 days to 15-20 days is no big deal and the owner was given an extension to live there until the end of September (moving into assisted living). Our original date on the purchase agreement was August 30th so I assume we would have to write an addendum for that which should be no big deal. Our financial situation has not changed and we both have 800 credit scores. The only risk I foresee is the home not appraising or them finding a foundation or roof issue. Our original lender waived the appraisal which tells me they had no worries regarding what the home would appraise for.

Any insight is appreciated.