Can the mortgage broker keep the appraisal deposit, if I go with another lender? The appraisal has not been done yet.  I gave them the deposit fee to lock the rate, but they came back and wanted 30% down instead of 25%.  I continued with the application at 30% down for a couple days, but then called them yesterday to tell them I was going with another lender that is offering 25% down and almost the same rate.  Checked my credit card and saw that they charged my card earlier this week.

I am confused is this fee for the appraisal or for a rate lock. Usually, you can not get a rate lock until the deal is underwritten and a commitment is given - which means the appraisal is complete.

If it is a "deposit" then the broker is acting as a agent for holding these funds. If it was an application "Fee" then you probably will not see it again.

It was a deposit for the appraisal.  By giving them my credit card info over the phone they also locked the rate.  They assured me on the phone that if the purchase did not happen I would get the deposit back as long as the appraisal was not done.

Here is what the deposit agreement says:

The deposit agreement says it is a good faith deposit. "Your deposit to cover the costs to process your application and pay for services from outside companies, such as your credit report, appraisal and title work.  In order to process your application quickly and efficiently, this work (and the expenses) will begin immediately after receiving your application.  In doing so, we rely on your commitment to continue the loan process.  Therefore, you cannot cancel or rescind this deposit agreement.

Your deposit may or may not be refundable, depending on the status of your loan.

When you close your loan with us, your deposit is fully credited to your closing costs.  The credit will be reflected on your closing statement.

If your application is denied or withdrawn, for any reason, we will refund your deposit minus the actual cost of your appraisal and credit report"