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I also recently received a similar offer from Wells Fargo. When I read the fine print on the back of the letter, there was a statement that said something like "Refinancing a mortgage of $X at Y% will result in 360 monthly P & I payments of $Z."

The $Z number was over $100 more than I would have expected for the mortgage amount and offered interest rate. They had clearly rolled something into the principle (most likely the closing costs). They didn't explicitly state anywhere in the letter that the principle would be increased.

The OP might want to take a look at the back of the letter to see if Wells Fargo spells out the monthly P&I payment. It might not be quite the deal it appears. It could still be worth it, however.
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