A couple quick answers for you:
a) An appraisers hands are tied when working with condo's. Even if it is a detached condo, it goes on a separate form, and they have to be appraised with other condo's. I am not saying that the appraiser is correct, but that is the reality.
b) Navy Fed isnt really that good. They are definitely not going to fight for your value. I am a former Marine, use Navy fed for banking, but in the mortgage arena they are not great.
The other option that you DEFINITELY have is to see if you qualify for a HARP refinance. HARP refinances require no appraisal, and I can see if you qualify in about 2 minutes... Rates are the same as typical conventional. The only difference is that the appraisal is waived... Rate/Term only, no cash out allowed obviously...
Give me a call or shoot me an email and I can take care of you, or shoot you in the right direction...
But do it before this debt ceiling thing gets out of hand...
Talk to you soon,
WJ Bradley Mortgage Capital