It is the appraiser's responsibility to adequately research the local real-estate market and to determine which comparable sales best represent the value characteristics of the subject property. A comparable sale is a property that has recently sold and is like the subject property in most respects, including size, location and amenities. Value of subject property is determined after all factors and market adjustments are taken into consideration.

Your ability to qualify for the loan depends on a wide range of factors, here is a bit of text from the U.S. Government Agency called the Consumer Financial Protection Bureau.

Lenders are required to verify and document that ... the consumer has a reasonable ability to repay the loan, considering such factors as the consumer’s income or assets and employment status (if relied on) against:

• The mortgage loan payment
• Ongoing expenses related to the mortgage loan or the property that secures it, such as property taxes and insurance you require the consumer to buy
• Payments on simultaneous loans that are secured by the same property
• Other debt obligations, alimony, and child-support payments. The rule also requires you to consider and verify the consumer’s credit history.

In addition to the above, the lender must have a reasonable expectation that the income that is being relied upon to support the approval will continue for the foreseeable future.

There are others programs called Non-Qm and are easier to qualify and don't have to follow these rules.

Closing costs include:

• Underwriting fee: This varies based on what lender we determine is the best fit for your needs
• 3rd party service costs: Appraisal, title insurance fees, inspections, warranty, survey, etc.
• Other costs and prepaids: Prepaid Interest, hazard insurance and property tax escrows

Closing cost estimates are specific to each loan scenario, and fees do change from time to time based on market conditions. We will provide fee and cost estimates with every loan pricing result. Additionally, once you apply for a loan you will receive an official Loan Estimate (which is a legally required disclosure document) that also summaries the fees and costs. Finally, before closing your loan you'll also receive a Closing Disclosure (a similar legally required disclosure to the Loan Estimate) which will show the finalized fees, costs, and prepaids.

You would want to refinance to improve your current situation where that improvement exceeds the costs. The improvement(s) could be:

• A lower payment
• A lower interest rate
• Change to a fixed rate
• Get access to cash to make a purchase or pay down higher rate debt

To the extent that any of these improvements exceeds the cost of the refinance transaction, then it would be beneficial to refinance.

The costs of a refinance can be in the form of cash paid to the lender, an increase in your loan balance, and/or included in the interest rate that you select. How the costs are paid does matter, but what matters most is to include all of the costs as you consider the value of the improvement to your current situation against those costs.