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Author: crackdclaw Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127801  
Subject: Re: Mortgage Issue Date: 2/22/2013 1:36 PM
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Not sure if this is right board, but am curious about almost continuous approaches by Wells Fargo Bank to re-finance- no cost. Am currently at 4.85% and this one would be nearer to 3%. Only downside is going to 30 years from 25 years but who cares as we will not live so long; it is just rent as far as I am concerned. Difference would be $250 per month- why not?

You're at the right board. Agree, why not do the refinance. You may want to follow up with some questions. Generally people lump a few different refinance approaches under "no cost", when there are differences. Quick breakout:

No Cost refinance - closing costs are rolled into the loan, no cash needed from borrower. Really not a no cost, more accurately a no cash.

No Cost refinance - using Lender Credit to pay closing costs. If current market rate is 3.5%, you accept a higher rate, say 3.625%, and the bank provides a lender credit to pay closing costs. Not really a no cost, the cost is accepting a higher than market rate. However, a great tool to use, as there is no cash from borrower and no costs rolled into the loan.

No Cost refinance thru current lender Wells Fargo. This may be there "3 step" refinance. There is no appraisal, minimum documentation, behind the scenes title work, and closing is handled thru the mail with you signing new loan documents in front of a notary. This is the real "no cost", as you will be refinanicng your exact loan payoff amount. It's called a 3 step, but it really is a streamlined HARP refinance. HARP is a government backed program. I'm not sure why you are only being offered a 25YR fixed, you should also have 15/20/30YR available.

Talk to someone at Wells, see if what you are being offered is a 3 step HARP refinance. Those are the loans being done at no cost to borrower.
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