1. Most lenders fund the loan per $1000. That's why it becomes $223,000 now;
2. Loan agent prefer loan amount up to get a little more commssion;
3. Actually lender loan you $820 more. This amount will be used for closing cost. Since it is less than $2,000, it won't treat it as cash out re-fi.
Yes, please read GFE carefully.
CaLoanAgent, where are you? Please add on.