Advice on a Cash-out refi competitor that just contacted me

[Blair Murphy]

Hi,

I've been in the process over the last couple of weeks looking into a cash-out refi on my 4-plex to re-invest into another like property. I'm at the stage where I've submitted almost all of the requested documents and today received a loan estimate. I've already been charged for an appraisal (last week) but the appraisal has yet to be conducted. I was contacted today by another lending company who I researched and has excellent reviews as well BBB rating. This is what he sent me:

"Ok so comparing your Loan Estimate to what mine would look like based on today’s loan pricing.

Your Loan Estimate:

Rate 4.875% with 1010 in points to get that rate and a 895 lender/origination fee (total origination charges 1905)
Your Escrow/title/notary fees are estimated at 925

My rate as of today:

4.625% with no points and a 995 lender fee/total origination fee (so mine is .25% better and 1010 cheaper) or 4.75% with no points and a 854 credit, reducing the origination fees to $141 (1764 cheaper)

My escrow/title/notary fees are 1165"

Any advice out there on how to deal with this? Can I cancel my appraisal with the initial lender and move forward with the seemingly better option? 

I'm really unsure what to do and appreciate any advice!

Thanks in advance!