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If you are locked into a rate and your property value drops by $3000 would they bump up your rate?

I was suppose to close and because they supposedly did not receive my subordination (come to find out they did) they declined me due to an incomplete application.  Now I am reapplying, at a higher rate of course, and I find out that they did receive my subordination before I was suppose to close but now are saying that even if that is true if my property value fell before they received the subordination that they would have ended up bumping me up at closing.  So I guess I have a 2 part question, how close to a closing do they check the property value and would the bump up have happened if I was able to close the first time.  Any guidance would be helpful.
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February 18 2010 - Belmar
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The appraisal when completed is usually good for a few months so I am not sure what the disconnect.  What is the value and how much are you borrowing. 
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February 18 2010

Anjeldee: Did your Lawyer say anything? Regards,

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February 19 2010
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It is under the HARP program and it is with my current lender Wells Fargo.  I feel that this was human error ( saying they did not receive the subordination in time to close which in fact they did) I am now questioning them on this and they are telling me that if the property value fell (from 340,000 to 337,000) before they received the subordination this would have happened anyway.  I guess I need to know if in fact this is true.  I am paying 1/2 a point but now because of this mishap I am paying .25 more at no fault of mine.
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February 19 2010
Anjeldee: I have found that a lender will do a search on the day of the closing and if they, for any reason, are not happy will not attend! Regards,
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February 19 2010
I am assuming you are refinancing under the Home Affordable Refinance Program.  Are you applying with your current servicer?   
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February 18 2010
Value can effect pricing on a conventional loan. If your loan to value changed enough to switch you into another LLPA bracket.

Essentially if you crossed a 0 or 5 (i.e. 70%, 75%, 80%) LTV then it can change. If your loan to value went from 67% to 69% then it won't effect pricing; however if it went from 69% to 71% it can effect pricing.
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February 18 2010
 
Related Questions
If you are locked into a rate and your property value drops by $3000 would they bump up your rate?
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February 19 2010 | 6 answers
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