Refi your Wells Fargo mortgage, no closing costs

[patrickj]

Originally posted by: PHL1365
TTT for anyone that hasn't done this yet. Mortgage rates have hit new lows.

I'm looking to do this again July 1 (as soon as I am eligible) to drop another 3/8 to 1/2 point off my rate

I'm currently on the fence with this deal. My first mortgage is at 6.125. I called Friday and was told that I qualify, and that the rate on the refi would be 5.375 saving me about $60 per month. To those of you that have done this, specifically what additional fees are being added to the new mortgage. I want to know what kind of crap fees they are rolling back in. Also how much higher than the quoted APR is your final APR on the new loan?

Thanks...

 

[ScAndal]

There are no fees. There is absolutely nothing else to pay.

Its a no brainer.

ScAndal

 

[Tommyboy8]

Parents just refinanced. Took a small mortgage (15 years) last year to buy a house, not a jumbo, for upper 6. They just refinanced after 1 year, and got a rate of 4.8% 15 years again... so they have to pay for an extra year but are saving $120 every months.

this was at bank of america, "closing costs" were about $900

 

[Tommyboy8]

Originally posted by: patrickj

Originally posted by: PHL1365
TTT for anyone that hasn't done this yet. Mortgage rates have hit new lows.

I'm looking to do this again July 1 (as soon as I am eligible) to drop another 3/8 to 1/2 point off my rate

I'm currently on the fence with this deal. My first mortgage is at 6.125. I called Friday and was told that I qualify, and that the rate on the refi would be 5.375 saving me about $60 per month. To those of you that have done this, specifically what additional fees are being added to the new mortgage. I want to know what kind of crap fees they are rolling back in. Also how much higher than the quoted APR is your final APR on the new loan?

Thanks...

for my parents there were two fees, forgot what exactly they were, I'll have to ask again... but it was $300 (for credit) and $600 for something else.

 

[randukar]

since this is for wells fargo customers only whats out there for the rest of us?
I owe 80k on my house and have 7.125%
Definately need to refinance

 

[dakata24]

how much do all those additional fees add up?

my parents just refinanced through Fremont Bank.

current fixed rates are 5.5% for a 30 yr, and 4.875% for a 15 yr. not as good as wells fargo rates, but they have:

? NO Loan Origination Fee
? NO Flood Tracking Fee
? NO Loan Documentation Preparation Fees
? NO Recording Fees
? NO Appraisal Fee
? NO Tax Service Fee
? NO Title Insurance Fee
? NO Credit Report Fee
? NO Underwriting Fee
? NO Escrow Fee
? NO Notary Fees

 

[Tommyboy8]

Originally posted by: randukar
since this is for wells fargo customers only whats out there for the rest of us?
I owe 80k on my house and have 7.125%
Definately need to refinance

shop around and call around, 7.125% is very high. My parents owe a lil bit more (95K) and had a rate of 6.375, monthly payment were $880 on a 15 year mortgage. They just refinance for 15 year, rate 4.8, monthly payment is now $760. Closing cost $1000.

 

[Zeeeter]

Do you guys plan to be in your current property for 30 yrs (or even15) ?

Why are you not considering ARMs? Check out ING Direct - they have some convincing arguments for ARMs . . . . .

I'm about to lay out $700K on a mortgage on a new home (in So Cal that is a 3 bedroom condo almost

) and I am looking at 5yr ARMs at 3.99%. Even if I am in there longer the savings will be so good on the early years that I may have cleared an extra $35K of principle over the fixed 30yr rate.

Just my $0.02 🙂

 

[PHL1365]

Originally posted by: ScAndal
There are no fees. There is absolutely nothing else to pay.

Its a no brainer.

ScAndal

Ditto. There are absolutely NO additional fees except that you need to pay a notary public to notarize your signature (about $10 per signature, and there were two signatures for each person listed on the loan)

 

[PHL1365]

Originally posted by: ScAndal
Has anyone successfully done this for a second time with Wells Fargo yet?

ScAndal

A co-worker here did this a second time a couple of months ago. He originally did this deal back in October.

 

[thor0298]

I work for liberty national mortgage. We are a wholesale mortgage group. Upon approved credit I can beat their rates all the time. One person did talk about how the loan amount goes up one payment amount which is true. If you live in minnesota send me an email if interested. today we had 30 yr no closing for 5.625% and 15 yr no closing for 5%
tathorso@hotmail.com

 

[Vic]

Originally posted by: dakata24
how much do all those additional fees add up?

my parents just refinanced through Fremont Bank.

current fixed rates are 5.5% for a 30 yr, and 4.875% for a 15 yr. not as good as wells fargo rates, but they have:

? NO Loan Origination Fee
? NO Flood Tracking Fee
? NO Loan Documentation Preparation Fees
? NO Recording Fees
? NO Appraisal Fee
? NO Tax Service Fee
? NO Title Insurance Fee
? NO Credit Report Fee
? NO Underwriting Fee
? NO Escrow Fee
? NO Notary Fees

Yes, it's a no-brainer. Except that 5.5% on a 30 fixed FNMA/FHLMC rate-and-term refi pays more than 2 points on the back today... and rates are up almost a quarter since yesterday (Monday) morning.
That offer is not that special. Use your brain people. Fees and rate are the same thing. Higher fees means lower rate, lower fees means higher rate. If your parents had been willing to pay a couple of dollars, they could have gotten 5% even, a difference that over 30 years on a $150,000 loan (amount used as an example) would have saved them roughly $16,000 dollars. And because all of that savings is interest, the majority of it comes in the first 5 years -- edit: because mortgages are interest front-heavy.

Originally posted by: ScAndal
There are no fees. There is absolutely nothing else to pay.

Its a no brainer.

ScAndal

Except that:
1. Refinancing to a lower interest rate with no closing costs means a reduced tax deduction. Your refund is going to be less next year. Enjoy.
2. You're re-amortizing your mortgage back out to 30 years. If you've been paying on your mortgage for as little as 2 years already and your monthly savings is less than $100 per month, you will probably LOSE money on this deal in the long run (and that's not even including the losses from the lower tax deduction in #1).

Originally posted by: thor0298
I work for liberty national mortgage. We are a wholesale mortgage group. Upon approved credit I can beat their rates all the time. One person did talk about how the loan amount goes up one payment amount which is true. If you live in minnesota send me an email if interested. today we had 30 yr no closing for 5.625% and 15 yr no closing for 5%
tathorso@hotmail.com

Hit the phones and beat the streets, pal. This forum is not a free advertising outlet for you. :|

 

[patrickj]

Originally posted by: PHL1365

Originally posted by: ScAndal
There are no fees. There is absolutely nothing else to pay.

Its a no brainer.

ScAndal

Ditto. There are absolutely NO additional fees except that you need to pay a notary public to notarize your signature (about $10 per signature, and there were two signatures for each person listed on the loan)

Sounds pretty good actually. I'll just read the truth in lending info and probably wait till the end of the month to see if the fed cuts once more. I'll lock in by July 1 or so...thanks for the info everybody...

 

[PHL1365]

Originally posted by: patrickj

Originally posted by: PHL1365

Originally posted by: ScAndal
There are no fees. There is absolutely nothing else to pay.

Its a no brainer.

ScAndal

Ditto. There are absolutely NO additional fees except that you need to pay a notary public to notarize your signature (about $10 per signature, and there were two signatures for each person listed on the loan)

Sounds pretty good actually. I'll just read the truth in lending info and probably wait till the end of the month to see if the fed cuts once more. I'll lock in by July 1 or so...thanks for the info everybody...

PatrickJ,

I wouldn't wait any l onger if I were you

Unfortunately, the best time to do this has passed, since rates have gone up about .125 percent just since Monday. The 10-year bond rates have already factored in a 1/4 percent Fed cut, so rates aren't likely to drop any lower. The 10-year bond yield is up another .009 percentage points today, so expect the mortgage rates to climb slightly higher. Wells Fargo adjusts their rates at the end of every business day to reflect the 10-year yields.

Also, you can lock in your rate just by calling and answering a few questions (less than 15 minutes). They send you the paperwork and you just have to sign them. If you want to back out, just simply refuse to sign them.

 

[supersaver]

I am locked at 5.375% 30 yrs fixed at zero cost in TX with my local agent.
I think this is the lowest rate in TX right now.

 

[jbloggs]

I saw some rates at Mountain States Mortgage , take look at their rates unter the best deal section which have no closing costs.

 

[5to1baby1in5]

I tried this when it was first posted and got a message stating I had entered an invalid account number. I figured I was not able to do this.

Well, yesterday I got a UPS secon day air package from Wells Fargo offering the same deal. The account number they gave me was the same one I typed in before, but it had a "472/" in front of it. I used this account number and it let me in.

Maybe the 472/ is the lending bank's ID code or something.

Edit...
Just got off the phone with the loan people and found this out:
The "472" is client #. It is found on the mail in portion of the monthley statement.
The lady said this is supposed to only be for select customers, but maybe this will help you if you couldn't do this before.

The letter stated this was "time sensitive" and gave an expiration date of 7/3/03.

The lady also verbally confirmed that mortage insurance does go away dropping my escro payment by ~$100.

😀

 

[aldamon]

Our principal balance is $79,600 and our rate is 6.625%. We have 12 years and 10 months left on our conventional, fixed-rate, 15-year loan. Do the mortage gurus here think we should bother to refinance? Our current loan is through Washington Mutual.

 

[rasputinj]

We just did a refi for 5.375(should be a little lower now) with no points for a 30 year fixed and closing costs were under $2000 with 700 of that being in interest charges, to pay off my origninal loan, they sent everything to us, signed docs at our house. My parents received a 15 year fixed for 4.75 with no points. This is a Cali only brokerage, I am not affiliated with these people at all, OMSrates.com, email Jami@omsrates.com, or call toll free at 888-938-9700. My brother is just starting his refi with them also. I am just happy about my loan and passing the info on to you guys.

 

[Bite]

Aldamon -- I would. I just locked 250K @ 4.5 on a 15 year thru Wells Fargo. You might also want to check out etrade....

Text

Edit: On etrade, one 80K refi option on a CA home valued at 200K is 4.5 with $4100 closing costs.

 

[novice]

Our principal balance is $79,600 and our rate is 6.625%. We have 12 years and 10 months left on our conventional, fixed-rate, 15-year loan. Do the mortage gurus here think we should bother to refinance? Our current loan is through Washington Mutual

It depends on what kind of fees you get stuck with. Do some prudent shopping around. You should be able to find a 15 year fixed rate for around 4.75% with 1% loan fee. You may also be able to find a 10 year fixed rate loan for around 4.50% or lower. Here in Kennewick, WA, a local mortgage broker is advertising 15 year fixed rate of just 4.25%. I don't know how many points he is charging, but it may bear investigation. Obviously, moving from your 6.625 to a 4.25% would make sense as long as you are planning to remain in your house long enough to recoup the fees. I just refinanced my 5.50% fixed rate 10 year mortgage to a fixed 4.875% 10 year mortgage thru Wells Fargo. while my new rate is a little above market, I did not have to pay any fees. That made it a no brainer for me. And while the rates may drop some more, I am still happy with my current deal. And no, I do not work in the mortgage business, but am in a related field (title insurance), so I am somewhat familiar with mortgage rates. BTW, you may want to wait a week or so, as the Fed is rumored to be considering another 25 basis point rate cut for this week, which should drive the rates even lower. (Assuming that is possible!)

 

[Vic]

Originally posted by: aldamon
Our principal balance is $79,600 and our rate is 6.625%. We have 12 years and 10 months left on our conventional, fixed-rate, 15-year loan. Do the mortage gurus here think we should bother to refinance? Our current loan is through Washington Mutual.

Call WAMU and tell them you want to lower your rate on a 10 year rate-and-term streamline. There should be no closing costs except for perhaps their $295 app fee. Rate should be 5.000% fixed or less (probably less but I don't speak for them).
Assuming that you had an original balance of roughly $87,500, your current P&I payment is $768/mo. Were you to refinance to a 10 year fixed at 5.000% at a beginning balance of $80,000 (to include interim interest), your new payment would be $848/mo. The $80/mo. additional would cost you $9,600 for the first 10 years, whereupon your home would be paid off. The 34 months of $768 that you would not have to pay would save you $26,112, and your net savings would be about approx. $16,512 minus any closing costs.
You're welcome.

 

[Vic]

Rates up big today after the Fed rate cut, as I predicted more than a month ago back on page 2 of this thread. Yield on the 10 year T-bond is up roughly 20 bps since the Fed announcement. Good news is that rates on the 30 fixed are still solidly in the 5's, but I wonder how much longer this will last. If refinancing makes sense to you (especially if you are looking for a shorter term) and you've been waiting on the fence hoping for even lower rates, quit being greedy. It just ain't gonna happen. Do it now or you will miss out.

For example, if you are 2 years into a 30 fixed at 7.5% with a remaining balance of roughly $150,000: your current P&I payment would be roughly $1,070/mo. If you refinanced today to a 20 year fixed at 5.25%, shaving 8 years off your mortgage, and paid all closing costs and a 1 point origination fee, all financed into the loan, you could also lower your payment to roughly $1,040/mo.
Quick math: $30 dollars less each month for 240 months ($7,200) + paying off the mortgage 8 years (96 months) early ($102,720) = $109,920 dollars in lifetime savings which is much > $3,000 in closing costs.

If, because I know someone will bring this up, you did it on one of these "no closing cost" loans, the rate on the same loan would go up to 5.75%, the payment would be the same $1,070 and you would lose out on the $7,200 in payment savings in the first 20 years. Which means that in the end, you would pay more.

edit: corrected typo

 

[Homerboy]

Cant think of a better time to refinance... rates are lowest in 45+ yrs. Much longer than any of us can remember.

Im closing on my refinance with cash out next week,
Dropping a 30yr loan with $130K left in principle @ 7.375% to 5.5% with a cash out.
I had the house reappraised, went up $30K and Im taking the cash out on that 5.5% to pay of CC debt (THANK YOU HOT DEALS FORUM!!!) car loans, medical bills etc etc.

My monthly payment will be ~equal to what I pay now, but I will have "erased" all that other high-intrest debt. I know its not erased, but buried into a 30yr loan at 5.5% its 'virtually' gone.

Ask nearly anyone, THIS IS THE TIME TO REFINANCE if you can. This is a no brainer for sure.

 

[PHL1365]

Originally posted by: Vic
Rates up big today after the Fed rate cut, as I predicted more than a month ago back on page 2 of this thread. Yield on the 10 year T-bond is up roughly 200 bps since the Fed announcement.
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q]

Umm, the reason mortgage rates have gone up in the last couple of days is not because the Fed cut short term rates. It is because the Fed did not cut them as much as the market had hoped it would. If there had been a 1/2 percent cut, then I think we would have seen 10-year bond yields fall about 10 basis points. Bond traders for the last 4-6 weeks had already fully factored in at least a 1/4 percent cut in the Fed Funds Rate. Many had even bet money (by buying treasuries at higher prices, forcing bond yields lower) that there would be a 1/2 percent cut. When that 1/2 percent cut did not happen, the market reacted quickly and the prices of treasuries dropped, therefore driving the yields up. Ultimately, it is the bond yields that affect the mortgage market, because borrowers are simply competing with other institutions for capital. That is why mortgage rates are so closely tied to 10 year treasury yields.

BTW, 200 basis points equals 2 percentage points. The 10-year bond yields are only up about 25 basis points (or 0.25 percentage points) since the FOMC announcement.