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

[morkinva]

I have a different offer number on the monthly bill they sent me, but when I try it online I get the result ''there are currently no morgage offers" -- maybe because I already have a 5.25% from the last time I did it.

 

[papaschtroumpf]

I already received the proliminary paperwork (disclosures and what not). They tell me to expect the final paprer that needs to be signed and notarized within 2-3 weeks.

 

[pinoy]

I wanted to refinance our mortgage and give wells fargo a try, but I waited for atleast 15 mins. for a CSR to pick up, no luck. did it trice and same thing happened, so I just gave up.:disgust:

 

[papaschtroumpf]

This deal if for existing Wells Fargo customer only!

 

[ImSeeker]

If you have more than 5.5 % you should be looking at refinancing SOMEWHERE.

I currently have 4 % (5 year balloon) on a 250,000 loan.

 

[Dug]

To anyone that's done this-

There's no closing costs, but who pays for the new title insurance and recording fees?

 

[kerokeroppi82]

LoL I WORK for a mortgage company that specializes in no points and no closing costs, what happens is that you get an intrest rate thats only slightly above other companies which charges points and closing costs, and then the lender (bank) would give us a larger rebate for doing the loan because of the slightly higher interest rate, and with that rebate we use it to pay title, escrow, appraisal, etc. making it a completely free loan for people. If anyone would like to know more or even consider refi now is the BEST TIME because we're 1/8 of a percent from the ALL TIME RECORD LOW EVER, which is damn good.

I would highly recomend getting a refi w/ no points and no closing costs rather then one with a slightly lower rate + costs, because first of all you dont add any more to your loan balance, which is a BIG thing because some people never make the money back that they lost from paying points. Also, if the rates ever do come down more, you can refi again for FREE which is the best part of no points. In fact, our customers on average have refi'ed with us 4 times.

Feel free to PM me if your interested and I can let you know more, or just call my company at 1(866) 200-5869, the company is called Solomon Financial Mortgage and Realty and we're located in Newport Beach, CA. Just let them know that saw a post from Danny the tech guy (yes I am know as the tech guy cause I just do computer stuff there) on anandtech, or just ask for Danny the tech guy and if I'm at work I'll help you out. Mods let me know if this post violates any rules and I'll remove it, have a good day

 

[PHL1365]

Originally posted by: Dug
To anyone that's done this-

There's no closing costs, but who pays for the new title insurance and recording fees?

Those are part of the closing costs. In the Good Faith Estimate are listed as POC (Paid outside of closing) by the lender.

Trust me, I've done this before. The only costs you will incur are the notary fees. And you may be able to get a free notary service at your local Wells Fargo branch. They even send you a PREPAID Fedex envelope to send the signed documents back to them.

 

[PHL1365]

Originally posted by: Daaavo

Originally posted by: dr_wily

Very hot deal.....thanks for the thread PHL1365.

BTW...giving credit where credit is due: I got this link from another poster here on AT about a year ago. I don't remember who it was, but all the credit should go to him/her. All I did was revive it.

 

[dr wily]

couldnt be more perfect timing, im sad i missed it a year ago since i peruse this daily..
I also got my paperwork outlining the process

 

[morkinva]

BTW...giving credit where credit is due: I got this link from another poster here on AT about a year ago. I don't remember who it was, but all the credit should go to him/her. All I did was revive it.

Link

Okay, I was able to get an offer when I set browser to accept all cookies -- down to 4.875%, how low could it go?

 

[Erevan]

It has been down to 4.625 over the last couple of days. I am waiting to see if it hits 4.5, because otherwise my savings is only $7.50 or so per month.

 

[kassaam]

Superhot, this will be my 3rd time taking advantage of this 'Rate Reduction Refinance' offer from Wells Fargo. I went from 6.625% -> 6.00% -> 5.75% and now, 5.375%. This refi is a nobrainer, no out of pocket and a very competitive rate. Check out this refi calculator and plug in the numbers to compare this product with loans that have fees but lower rates. You may be surprised how long it might take to actually start saving money by taking the loan with less interest. Cheers!

 

[PHL1365]

Originally posted by: kassaam
Superhot, this will be my 3rd time taking advantage of this 'Rate Reduction Refinance' offer from Wells Fargo. I went from 6.625% -> 6.00% -> 5.75% and now, 5.375%. This refi is a nobrainer, no out of pocket and a very competitive rate. Check out this refi calculator and plug in the numbers to compare this product with loans that have fees but lower rates. You may be surprised how long it might take to actually start saving money by taking the loan with less interest. Cheers!

Very good observations. One other thing to keep in mind, closing costs are not tax deductible, IIRC. And if you pay points to get a lower rate, the points are deductible , but they must be amortized over the entire length of the loan (for refi's). Thus, if you sell the house in five years, lets say, you never get to deduct most of the cost of the points.

Granted, this doesn't amount to a huge amount of money, but certainly something to consider when you're calculating the cost/benefits of points vs. no points and traditional refi's vs. no cost refi's.

Unless you're rock-solid certain that you will keep your home for the time it takes to recoup the cost of refinancing, no-cost refi's with a slightly higher interest rate is the way to go. It's that old "bird-in-hand" thing.

 

[PHL1365]

Originally posted by: morkinva

BTW...giving credit where credit is due: I got this link from another poster here on AT about a year ago. I don't remember who it was, but all the credit should go to him/her. All I did was revive it.

Link

Okay, I was able to get an offer when I set browser to accept all cookies -- down to 4.875%, how low could it go?

Thanks for digging up the old thread, morkinva. There's a lot of useful discussion in that thread.

And thanks again for saving me LOTS of money!!!

 

[ebolavirs]

Originally posted by: kerokeroppi82
LoL I WORK for a mortgage company that specializes in no points and no closing costs, what happens is that you get an intrest rate thats only slightly above other companies which charges points and closing costs, and then the lender (bank) would give us a larger rebate for doing the loan because of the slightly higher interest rate, and with that rebate we use it to pay title, escrow, appraisal, etc. making it a completely free loan for people. If anyone would like to know more or even consider refi now is the BEST TIME because we're 1/8 of a percent from the ALL TIME RECORD LOW EVER, which is damn good.

I would highly recomend getting a refi w/ no points and no closing costs rather then one with a slightly lower rate + costs, because first of all you dont add any more to your loan balance, which is a BIG thing because some people never make the money back that they lost from paying points. Also, if the rates ever do come down more, you can refi again for FREE which is the best part of no points. In fact, our customers on average have refi'ed with us 4 times.

Feel free to PM me if your interested and I can let you know more, or just call my company at 1(866) 200-5869, the company is called Solomon Financial Mortgage and Realty and we're located in Newport Beach, CA. Just let them know that saw a post from Danny the tech guy (yes I am know as the tech guy cause I just do computer stuff there) on anandtech, or just ask for Danny the tech guy and if I'm at work I'll help you out. Mods let me know if this post violates any rules and I'll remove it, have a good day

you got pm

 

[dr wily]

hey did you get 4.875 from wells fargo on this link? Looks like bankrates avg is at about 5% now, cant imagine wells doing lower than the avg since i believe it was at about 5.10 or so a week ago when wells was at the 5.375 that the OP stated originally..

If so I might have to apply again right after! ;P

 

[MiserMan]

I work for a mortgage company and I can tell you there's no such thing as no closing costs or a low fee closing cost such as $299. You will absorb the cost somehow, usually bumping up your interest rate just a tad. Because, a company, in nearly all cases, has to pay for attorney fees, title search, appraisals, etc, and it ain't cheap. They have to recoup from somewhere, and that will be in your interest rate. usually.Text
My advice: Shop around and shop Good Faith Estimates. Anyone can give you a phone quote or web quote and not know the particiulars of your credit history, loan-to-value, debt to income, etc., and make it sound appealing at first.

 

[PHL1365]

Originally posted by: MiserMan
I work for a mortgage company and I can tell you there's no such thing as no closing costs or a low fee closing cost such as $299. You will absorb the cost somehow, usually bumping up your interest rate just a tad. Because, a company, in nearly all cases, has to pay for attorney fees, title search, appraisals, etc, and it ain't cheap. They have to recoup from somewhere, and that will be in your interest rate. usually.Text
My advice: Shop around and shop Good Faith Estimates. Anyone can give you a phone quote or web quote and not know the particiulars of your credit history, loan-to-value, debt to income, etc., and make it sound appealing at first.

You are absolutely correct. In general, there is no such thing as a free lunch. However...

that said, this is still a good deal for a certain subset of homeowners. Specifically, anyone wanting a no-hassle refi, or trying to get rid of PMI, or someone with a small loan balance (under 150K, for example), etc. This program doesn't fit everyone, but it is useful to a lot of people that fall in these categories.

For me personally, it is worth it to not take the risk of dealing with a mortgage company/broker that may or may not get my refi done on time. If, for example, the mortgage broker somehow allows the rate lock to expire, then I may be SOL with regard to interest rates. This is a very real risk since there is so much activity going on in the refi market.

 

[PHL1365]

Originally posted by: dr_wily
hey did you get 4.875 from wells fargo on this link? Looks like bankrates avg is at about 5% now, cant imagine wells doing lower than the avg since i believe it was at about 5.10 or so a week ago when wells was at the 5.375 that the OP stated originally..

If so I might have to apply again right after! ;P

Are you sure you're looking at the 15 year rates? Last I checked, almost everyone on bankrate was well under 5.0 percent for 15 year loans.

In fact, looks like the yield on 10-yr notes dropped again. It's now at 3.69%. This is at least .38% lower than about 2.5 weeks ago.

 

[morkinva]

For me its down to 4.75% for a 15 yr and 4.25% for a 10 yr, kind of doubtful it'll go lower?

 

[KATX]

Originally posted by: MiserMan
I work for a mortgage company and I can tell you there's no such thing as no closing costs or a low fee closing cost such as $299. You will absorb the cost somehow, usually bumping up your interest rate just a tad. Because, a company, in nearly all cases, has to pay for attorney fees, title search, appraisals, etc, and it ain't cheap. They have to recoup from somewhere, and that will be in your interest rate. usually.Text
My advice: Shop around and shop Good Faith Estimates. Anyone can give you a phone quote or web quote and not know the particiulars of your credit history, loan-to-value, debt to income, etc., and make it sound appealing at first.

This sounds like a plug for full price mortgage companies and banks and against discount/innovative mortgage companies.

If you pay closing cost, you are kinda out of competition for refinancing because if you do refinance, it is almost as if you threw your previous closing cost in the toilet.

But if you refi with no closing cost, as long as the new rate is lower than your old, you are better of, and in addition you have not lost any grounds wrt to refinancing again.

 

[bhaney]

Anyone know how this might work for an FHA loan?

It doesn't have PMI exactly, but it does have some form of mortgage insurance ("MIP"). Would that be waived also? I haven't logged in to check if we're even eligible for this offer, we signed on our house through WF in April of last year.

Thanks,
-Brett.

 

[morkinva]

Originally posted by: bhaney
Anyone know how this might work for an FHA loan?

It doesn't have PMI exactly, but it does have some form of mortgage insurance ("MIP"). Would that be waived also? I haven't logged in to check if we're even eligible for this offer, we signed on our house through WF in April of last year.

Thanks,
-Brett.

at the bottom of my coupon it says:

*This offer is not valid on FHA loans.

 

[bhaney]

...and I'm officially bitter:

We´re sorry, but your mortgage account does not currently meet the criteria for our online refinance programs.
Wells Fargo Home Mortgage has a number of refinance programs available offline, and we would like to work with you to find a refinancing solution that meets your needs.

That sucks.

-Brett.