I applied for a mortgage with

I applied with bank for a mortgage rate at 4.375 at the end of April at a 25 day lock.  He had me pay $500 dollars for the lock.  He told me that if they could not close the deal then they would refund the fee.  The lock ended up getting extended according to the lender because the subordination letter was not done.  He called today and said that the lock expired and he could only offer me 4.875.  I asked for my money back, he now says that the fee was for the appraisal and could not refund the fee.  I am thinking about calling the manager and my credit card company. 

James,

It is not common for an application fee to be refundable.  You may want to refer to the paperwork you received to see what you had agreed to when you signed up with the lender. 

Unfortunately many originators don't take into account the turn times, or they don't anticipate longer turn times when rates dip, when they lock your loan and you are the one who ends up losing out on a great deal.

James did your lender provide you with a rate lock agreement?

No he did not.  He paid me alot of verbal commitments.  Including giving back my money in case this loan then not go through.  Anyway, I do have good news, after I wrote an email spelling out all our conversations and he relented to giving back my fee.

Not too bad.

4.875% is now a terrific 30 yr fixed rate...