Refinancing Advice For Ethics

Hi Kate, I am looking for refinancing advice. I applied for a refinance loan several days ago and locked the rate. I have also provided all the necessary documentation (employment info, etc.). So far my only cost is the $350 I paid the appraiser yesterday. Since locking the rate, however, current mortgage rates have dropped quite a bit over the past few days.

Would it be unethical of me to cancel the application and reapply for the currently lower rates, either with my current broker or with another broker?

I realize this is not the best news to give my broker (kinda dreading it) but since you were in the lending business and owned your own company, could you give me your thoughts?

Other than the expense for the appraisal and possibly the credit report, am I obligated to pay any other expenses or fees at this point 4 days into the application process?

Thanks for your help, Joe


Hi Joe,

My first real estate broker, Brian Brown, included The Golden Rule in his employee contracts and referred to it often at weekly training meetings.

"Do unto others as you would have them do unto you."

I realize we all want the best mortgage rate, the lowest mortgage payments and the best deal for our refinance. We also want to be treated with kindness and respect.

My best refinancing advice? Use the golden rule in your considerations.

Call and talk with your mortgage broker. Hopefully the two of you can agree on a mutually acceptable solution.

As far as reimbursing deposits, I believe this can differ from state to state. So check with your broker.

Best Wishes,



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