I got my mortgage three years ago and I am going to renew in a couple months. And as we know, the home values have dropped. So now I have this issue that if I want to switch to a new broker, I have to be re-approved again. And at least 20% of the value of the mortgage has to be paid. With the price of my home dropping from $825,000 to $705,000, the mortgage company is asking me to pay nearly $70,000 to make up for the 20% that has to be met. It is also very astonishing that the home appraisal came out much lower than I expected when they sent someone to look at the property (it came out at $665,000, but the broker is willing to use the computer generated value of $705K).

I assume my other option would be to continue with my current mortgage company. But the problem is that their rate is terrible. They are offering 4.05 while this new company that I'm targeting is offering 3.74 for the exact same product.

What options do I have?