Low appraisal on cash-out refi adding points; lock expiring; WWYD
Bigger Pockets Community,
I'm closing on a conforming cash-out refi loan soon from Loan Depot sourced through Credible dot com, owner occupied duplex. My rate lock expires in 6 days and I sent a detailed rebuttal with a lot of good points (in my mind) to my loan team but they're saying the only thing that will help the appeal is comps, not actual rent, not a number of things the appraiser missed, just comps and average rent for the market. I have a realtor friend working on comps for me and I sent them some comps of my own, and some of the appraiser's comps were from around a year ago so didn't factor in the market appreciation from what I can tell. I really feel that the home was objectively undervalued due to the appraiser's omissions. Unfortunately, the team I was working with didn't tell me until very recently that the low appraisal was the reason for extra points on the loan - they were having trouble finding the right person at LD and frankly were not communicating well with me. Now the rate lock expires in 6 days and I'm scrambling to demonstrate the home's value. I had no idea and no warning that the appraised value would affect the loan (only 63.8% loan to appraised value) and it's adding about $4k to the closing costs. I have no plans to sell and am buy and hold for the foreseeable future and want to use the cash out to start investing in more properties and for low-interest emergency funds for this and any other properties I invest in. I don't want to pay any rate lock extension fees but I know that might be negotiable - I have a call with my mortgage team later today.
What would you do in this situation, and did I make any major mistakes here? Should I eat the extra costs and proceed to close quickly with no rate lock extension? I'm totally open to feedback and thanks in advance.