Wells Fargo customers - ReFi Mortgage w/ no closing costs ** Edit ** Still warm, but cooling off

[PHL1365]

****** EDIT 4/02/04 ****************************************************************************************
10-yr bond yields have been steadily creeping up for 2 weeks now. In early trading today, yields are up approximately 22 basis points to 4.12%

This deal is still alive, but with higher rates than when I originally posted. If you've been sitting on the fence, you may want to consider acting NOW.

I think Wells Fargo adjusts their mortgage rates near the end of the business day (probably East Coast time), so there is still a short opportunity to take advantage of the low rates before WF raises the rates later on today.

Even if you don't want to deal with WF, odds are that rates will rise across the board with all mortgage lenders. Methinks we may have seen the last low point in rates for a while.

Glad I got in at 4.75%, 15-yr

****** END EDIT ********************************************************************************************

****** EDIT 3/16/04 ****************************************************************************************

10-yr bond yields dropped 8 basis points today to 3.69%. This is about 20 basis points lower than when I originally posted this deal.

Wells Fargo indexes their interest rates according to the 10-yr notes.

This MAY mean even lower rates. Someone said they got 4.625% (15 yr) a few days ago. Rates may drop to 4.5%. Hurry, the bond market may change rapidly on 3/17.


****** END EDIT *********************************************************************************************


This has been around a long time, but with interest rates taking another dip, many people may want to take advantage of this.

Wells Fargo Three Step Refinance

Quick Summary:

*No closing costs -- nada, zip, zero

*I got 4.75 % for 15 yr fixed

*Also available, 4.25%, 10 yr and 5.375%, 30 yr

*You can do this even if you've already refinanced with wellsfargo in the past. I refi'd though this program about a year ago with no problems.

***** YMMV depending on your account and credit history *****


Pros:

Almost effortless. Just take the documents to a notary and send them in the included fedex envelope

You get to skip a monthly payment (increases your principal, however)

Perfect if your loan balance is under $150,000. Many lenders have minimum loan requirements.


Caveats:

This is not the lowest rate you can get. Other mortgage brokers could probably get you about 4.25 %, but WITH CLOSING COSTS.

The APR is the same as the interest rate because there are NO CLOSING COSTS. You could probably get a loan with approx 4.25% - 4.50% APR if you shop aggresively and don't mind putting up with the paperwork, reappraisal, uncertainty, etc.

 

[miyagisan]

just called not available to everyone only to a selective few who receive the email

 

[NeoV]

looking in to

 

[PHL1365]

Originally posted by: miyagisan
just called not available to everyone only to a selective few who receive the email

Try doing it online. I did not receive the email, but I was still able to submit the application. If it doesn't get approved, well...

But as far as I know, the online link should work.

By the way, I've been using this link for close to a year now, just to keep tabs on the rate. If your loan is relatively new, your account may not show up in their database yet.

"A select few" probably means those people that pay their mortgage on time every time. I usually make my payments about 10 days early every month. This might play a role.

 

[nippyjun]

What does the coupon code do?

 

[daviemac]

You don't need to be a Wells customer do do this. I'm with Flagstar Bank, and I'll do it for anyone we can credit approve. If anyone wants a quote, e-mail me or call me at 866-733-3700 x231. We're a Federal Savings Bank, and loan in all 50 states.

 

[Aztech]

These programs are available online only for current mortgage customers of Wells Fargo Home Mortgage. If you're not a customer of Wells Fargo Home Mortgage, you may still be eligible for all of the benefits of our Wells Fargo Three-Step Refinance SYSTEM. Call us toll-free at 1-866-389-4326, Monday through Friday, 8 a.m. to midnight, and Saturday 9 a.m. to 5:30 p.m., ET.

 

[bman46]

hot?

 

[Cleaner]

This deal seems to come around about every 3 months and everytime most of the Anandtech community seems to dislike it. So what's the real deal, is it good or not?

 

[PHL1365]

Originally posted by: Cleaner
This deal seems to come around about every 3 months and everytime most of the Anandtech community seems to dislike it. So what's the real deal, is it good or not?

This deal never really goes away. What makes it hot is the recent drop in interest rates. The rate on this program has dropped .375 points since last Thursday.

 

[ETan]

If you know what you're doing and is on top of your financials, no problem with debt, savings is on track, etc, then this is a no-brainer.

A good mortgage broker / loan officer / loan advisor (all the same) should be able to (and WANT to) look at your entire financial picture, make sure you are on track with your goals, and basically advise you on what mortgage product is best suited for you.

Most people don't know this, but there are programs out there that have flexible payments, true bi-weekly and re-amortization, etc, that still lets you pay off your mortgage much sooner. I think mortgage is a very important part of your financial picture, but many people pick (or get "sold" into) programs that are not really suitable for them.

Don't get pressured into a sale, or jump onto any bandwagon. Sometimes not refi-ing could be the best thing to do (like my own mortgage). The Good Faith Estimates and Truth in Lending and APR's are not always accurate... unfortunately there are too much predatory lending in this business. Be careful!!!

My $0.02. (I work in a big mortgage firm.)

 

[patrickj]

It says I'm not eligible for this with the online questionare. I'll call tomorrow to see if I can do this again. I refinanced with them about six months ago, but I believe rates are down from where I last refinanced. Thanks for the reminder...

 

[kdegarmo]

I just tried it and they wanted a $350 application fee which would be applied to closing costs, so apparently there are closing costs associated with my refi. Decided not to do it since I'm currently with Wells Fargo at 5.675%.

 

[Packerbacker]

I just applied today. I am presently with Wells Fargo and refinance one year ago with no closing costs. I did the 15 yr with @4.75% with no closing costs. And I did not receive any coupon code for this deal--I just called the toll free number and was offerred this deal. I will save over $40 a month by refinancing!

 

[Bite]

I'm in @4.375 with WF -- got it six months ago.

 

[novice]

I did the "no fee" Wells Fargo refinance about 9 months ago. Went from a 5.5% fixed rate 10 year mortgage to a 4.8725% fixed rate 10 year mortgage. It was a good deal, all the paperwork was shipped to my house, we just had to sign the documents and have our signatures notarized and return them to Wells Fargo. After I found out about the deal, I shared the link with a co-worker and he also went through with it. IMO, a good deal for most people. If you can lower your interest rate and consider shortening your term, and not pay any fees, why shouldn't you? I think I will pass this time, though. I really don't want to push my mortgage back to a full 10 years, when I am almost down to just 9 years to go.....

 

[Netopia]

I just called and did initiate a refi of my VA loan, but couldn't get the "no closing costs" special.

Turns out that the deal that this thread is about is only available (due to state laws) in 18 states at the moment. My state (Maryland) doesn't allow for it because Maryland wants its cut of new taxes and fees and the purpose of this type of loan is to bypass all of that. Appearently there are a LOT of states that aren't allowing for "no closing cost" loans because the of the loss of revenue to the state.

Blood suckers.

Joe

 

[Diabolus]

What states do apply? I'm in Jersey.

 

[Aztech]

I don't know about this being a no-brainer, as someone stated. I think it could be the right choice for some in certain situations. Any time you have "no cost" refis, it means you'll get a higher interest rate. Now, if you're not sure you're gonna be in that house for much longer, than this may be the way to go. Otherwise, if you intend on staying in your current home long enough to make up for closing costs, then go with the lower interest rate.

 

[nebula]

Originally posted by: daviemac
You don't need to be a Wells customer do do this. I'm with Flagstar Bank, and I'll do it for anyone we can credit approve. If anyone wants a quote, e-mail me or call me at 866-733-3700 x231. We're a Federal Savings Bank, and loan in all 50 states.

Hopefully you go away for good. If you do come back, read the rules. Solicitations are not allowed.

 

[papaschtroumpf]

Not quite true. This is a way for Wells Fargo to keep you doing business with them rather than seeing you go to someone else. You *may* get a better deal somewhere else, but it will involve more work on your part. This is literally an hours worth of work: you will get the loan documents in the mail and simply sign everywhere required (must be notarized, possibly your only cost) and you get a lower mortgage. So it's at the very least a no-brainer for the lazy (or the busy).
Do realize however that since it's a new loan it will extend when you're paid off: if you're 5 years inside of a 30 year loan, you are signing for a new 30year loan so you won't be done paying until 30 years from now instead of 25 for your current loan.

I did it once last year and they are offering me a rate 0.5% less right now so I'm trying to do it again, although I wouldn't be surprise if they tell me I can't do it again, but it doesn't hurt to try.


Also, and this is huge: if you have mortgage insurance on your mortgage now, the new loan will not require mortgage insurance: this will save $100-$200 a month on a typical mortgage that requires mortgage insurance. Typically you were required to add mortgage insurance in your payment if you put less than 20% down when you bought the house.

 

[Daniel]

I just did my first home purchase and did the mortgage through WF about 2 months ago. I got 5.75% fixed, 30 years. I don't know if it's too soon but if I can refinance already through them for no cost and drop up to half a point it would be great.

 

[forkd]

oops I'm such a hippocrite

 

[papaschtroumpf]

Originally posted by: Daniel
I just did my first home purchase and did the mortgage through WF about 2 months ago. I got 5.75% fixed, 30 years. I don't know if it's too soon but if I can refinance already through them for no cost and drop up to half a point it would be great.

I think you need to have had your house for 1 year to qualify.

 

[PHL1365]

Originally posted by: forkd
Citibank will do 5.25% 30 year fixed with 0 closing costs....this is hotter than the Wells deal. The difference is that Citibank is more stringent on credit scores. Must be 650 fico or higher I believe

Be careful about these types of loans. Sometimes, "no closing costs" means no costs incurred with the lender. But you *might* still be liable for other costs such as appraisals, title insurance etc. Make sure Citibank is paying for all these third part expenses before you jump on this.