This is unbelievable. Just purchased a house in a nice area. I paid 357k and put down 85k. So about 25% down. My current rate is 4.875% and I just found a no cost loan at 4.125%. The savings is 130 a month. No fees and no out of pocket. I was currently 6 months into the purchase and figured with the improvements I made outside the appraisal would come in. Well, lo and behold, was I wrong. The appraisal came in at 330k. That puts me about 8000 under the 20% equity needed to make this deal. The lender told me I had three options. (1) Talk to the realtor and see if she can find comps in the area that the appraiser didn't look at and see if you can get the appraisal adjusted. (2) Come to the closing table with the 8000 to get to the 20% equity portion. (3) Nix the deal and be out the 365 for the appraisal and app fee. Naturally (1) would be preferrable if the appraiser goes along with an adjustment. (2) I have the cash for the equity adjustment. It would take about 3 and a half years to recover. I am retired and this is our last house. But do I want to put more money into a black hole. Buying a house today seems like buying a car and watching it depreciate as soon as you leave the showroom. (3) Maybe just chalk up the 365 as a small loss and go on with my life. I'm all ears if anybody has any insight into my dilemna. Thanks all.