Also, if your comparison shopping, sometimes no closing costs means that they'll just roll them into the loan for you. So, no out of pocket cost at the time, but you pay for it over time.
Also, if your comparison shopping, sometimes no closing costs means that they'll just roll them into the loan for you. So, no out of pocket cost at the time, but you pay for it over time.
What? where do you get that they don't require PMI? Regardless of equity? That would definitely heat up this deal.
Get 2 loans 1st for 80% second for 20% (equity). no PMI
I just did it with 80/10 on my new house.
I did this last year...No costs, no money out of my pocket (Except for Notary Fees which they refunded).
And they sent me a $300 Target GC last year.
So to answer your question Phil, it's a no cost loan. They make they money off you by giving you a higher interest rate than what you can get by going out and shopping yourself.
That was the case when I did it last year, I don't see why they would have changed it, it was somewhere on the fine print / info / q&a on the web page but I don;t remember where since it didn't apply to me, although I pointed it out to a cdoworker and they definitely dropped his PMI even he had 5% or less equity.
i currently do wells fargo and wanted to refinance last summer and they said it would cost about 1500$. so id have to be in my house for another 2 years to even see the savings. With this deal is there ANY upfront charge is it a straight up lowering of interest just to keep your business?
were currently doing a 6% 7/1 ARM...
you can pm me with your answer if you wish too..
thanks.
were currently doing a 6% 7/1 ARM...
you can pm me with your answer if you wish too..
thanks.
There truly are no charges except the cost of notarizing although most banks & credit unions offer free notary service, and lots of executive asssistants at large companies are notary publics, so you should be able to find a way to do it for free.
All they do is take you current balance and change the interest rate, although because of the closing process I think that you don't pay your mortgage for the month where you close, so it gets addded to the balance (in effect still no cost to you).
This is different from "no cash / $0 refinancing" that you may find with other lenders where they either ask you to pay for appraisal and what not, or simply add the costs to the balance of the loan so that you end up financing that $500 appraisal over 30 years...
That said, you still be able to find a better deal with another lender, this deal is just really easy, so great for the lazy or the busy (I'm both).
All they do is take you current balance and change the interest rate, although because of the closing process I think that you don't pay your mortgage for the month where you close, so it gets addded to the balance (in effect still no cost to you).
This is different from "no cash / $0 refinancing" that you may find with other lenders where they either ask you to pay for appraisal and what not, or simply add the costs to the balance of the loan so that you end up financing that $500 appraisal over 30 years...
That said, you still be able to find a better deal with another lender, this deal is just really easy, so great for the lazy or the busy (I'm both).
There are NO upfront charges (except a notary fee), if you qualify.
You should be able to do this, but the only way to be sure is to call and ask. Either way, 6% seems kind of high for a 7/1 ARM. I think those are running around 4% right now. I don't think Wells Fargo is offering ARMs through this program. You'll probably have to go to a fixed term. But even if you go to a 30 yr fixed at 5.38%, you'll still be saving money.
(if this works like the last time they offered this) Be aware that if you go on their web site they show you one or several rates (such as same term lower interest, or shorter term with interest to match) once you choose it on the web site you are locked into it. So if you get them to make you the offer today and generate the paperwork and interest rates go down tomorrow, you will not be able to get their web site to make you another offer, it will tell you that you already have one pending and that you can't get another.
Once you get them to send you the offer, you have 30 days to return the notarized documents back to them, if you decide for whatever reason that you want to keep your higher mortgage (or you got off your butt and found a better offer somewhere else) then simply don't return the documents.
The documents may be good bargaining material with another bank/broker (this is what they offer me, can you beat it?)
Once you get them to send you the offer, you have 30 days to return the notarized documents back to them, if you decide for whatever reason that you want to keep your higher mortgage (or you got off your butt and found a better offer somewhere else) then simply don't return the documents.
The documents may be good bargaining material with another bank/broker (this is what they offer me, can you beat it?)
Confirmed no PMI: when you get to the page where they show you what your new rate would be, there are FAQ links on the right side of the screen and one of those specifically addresses the FAQ that you will not have to pay PMI as part of the new loan, regardles of equity, which is a major bonus if you pay PMI today.
thanks for the help guys, i will put in my account number when i get home.
our arm was when the 30 year was at about 7% 2.5 years ago.. it was the beginning of the interest slide.. what would that be nov. 2001?
ive been keeping track through kiplinger/bankrate for awhile now but alot of them (theres a nice site that calculates everything including closing costs on the page and you can choose) still cost too much for what we want to do with our first time house. We just cant make a several year commitment (who knows when wed move) to try and save money by putting $$ up front to save later.
So this sounds perfect.. what would be nice is saving 40$ a month and having a 30 year with which i could rent later and not worry about refinancing down the road
our arm was when the 30 year was at about 7% 2.5 years ago.. it was the beginning of the interest slide.. what would that be nov. 2001?
ive been keeping track through kiplinger/bankrate for awhile now but alot of them (theres a nice site that calculates everything including closing costs on the page and you can choose) still cost too much for what we want to do with our first time house. We just cant make a several year commitment (who knows when wed move) to try and save money by putting $$ up front to save later.
So this sounds perfect.. what would be nice is saving 40$ a month and having a 30 year with which i could rent later and not worry about refinancing down the road
excellent now just have to wait for the documents.. saving 60$/month and have a nice stable 30 year. Best deal ever thanks PHL1365!!!!
Actually this is the standard with a $500 appraisal fee. Title is included and no PMI for less than 80%. They are also one of the largest CRA lenders in California and they participate in VA loans which is also important. Of course a lot of companies do these things but with much less experience and a less than impressive track record. They are a company I trust with my loan.
This would be sweet if it wasn't Wells Fargo. They suck. My mortgage got bought by them and they are rat ba$t@rd$.
They do everything in the power to nickel and dime you and to screw you for interest. Once upon a time I banked with First Interstate then the went downhill big time. Their tellers can't do anything other than cash checks and accept deposits. If you had any other questions, they point you to a phone and you have to call their call center. What kind of cr@p is that?
As for my mortgage. Every month I like to send a little extra towards the principle. That isn't cool in their eyes. In spite of my instructions, they kept applying it to the next month's payment instead of the principle. When I contacted them about this, they gave me a 2nd address to send additional principle payments to. Anything to make it a pain not to conform to their process... They no longer even return the cancelled checks to you. They process them as e-checks. I don't trust them. I think someone there has figured out it is to their advantage that you don't have hard copy proof that they cashed your check. I've also noted that they will hold the checks for up to 2.5 weeks. If you send your payment early they won't cash it right away and save you any interest, they wait to suite their own interest.
Wells Fargo sucks. This is not hot. Refinancing is good. They sucky part is even if you refi with someone else, these jerks might buy your mortgage anyway.
They do everything in the power to nickel and dime you and to screw you for interest. Once upon a time I banked with First Interstate then the went downhill big time. Their tellers can't do anything other than cash checks and accept deposits. If you had any other questions, they point you to a phone and you have to call their call center. What kind of cr@p is that?
As for my mortgage. Every month I like to send a little extra towards the principle. That isn't cool in their eyes. In spite of my instructions, they kept applying it to the next month's payment instead of the principle. When I contacted them about this, they gave me a 2nd address to send additional principle payments to. Anything to make it a pain not to conform to their process... They no longer even return the cancelled checks to you. They process them as e-checks. I don't trust them. I think someone there has figured out it is to their advantage that you don't have hard copy proof that they cashed your check. I've also noted that they will hold the checks for up to 2.5 weeks. If you send your payment early they won't cash it right away and save you any interest, they wait to suite their own interest.
Wells Fargo sucks. This is not hot. Refinancing is good. They sucky part is even if you refi with someone else, these jerks might buy your mortgage anyway.
There are a few lenders that portfolio 100% of their loans. Just have to look around and make some phone calls.
I think he means people with more equity in their home get an even lower rate. For example if you bought your house 2 years ago with 5% down you may get 5.875%, whereas if you bought it 10 years ago and now have 25% equity, you may get 5.375% instead. The same applies on a brand new mortgage usually, regardless of PMI. Someone suggested getting 2 loans, one for 80% one for 20% to avoid PMI, but there again the second loan usually has a higher interest.
All I can tell you is that a coworker signed up at the same time I did last year, and I got a better rate than he did because I had more equity, but he ended saving more money monthly because his PMI got waved whereas I didn't have PMI on my mortgage to start with.
Look at the numbers they quote you and decide if it's for you. Just don't forget to look up how much your PMI is now and take into account the fact that you won't have to pay it if you sign up.
All I can tell you is that a coworker signed up at the same time I did last year, and I got a better rate than he did because I had more equity, but he ended saving more money monthly because his PMI got waved whereas I didn't have PMI on my mortgage to start with.
Look at the numbers they quote you and decide if it's for you. Just don't forget to look up how much your PMI is now and take into account the fact that you won't have to pay it if you sign up.
bump..
quick q, whats the turnaround time after submitting request? do they send an email or call or just send the packet or what?
quick q, whats the turnaround time after submitting request? do they send an email or call or just send the packet or what?
Usually just a few days and UPS will deliver the documents. It may take slightly longer because they may be very busy right now with the drop in rates.
KK
Lifer
- Jan 2, 2001
- 15,903
- 4
- 81
Sorry about that poorly written whatever you'd call it. Basically, I dropped my PMI but in doing so I still wasn't able to get the rates that others were getting quoted because I still didn't have 20% equity. The difference between the quotes were about 1/2 point.
KK
A local lender offered me 5.5% with no closing costs, no appraisal fees, no title fees, today for a 20 year loan.
Might jump on it.
Might jump on it.
Daaavo
Platinum Member
- May 23, 2000
- 2,238
- 1
- 81
Originally posted by: dr_wily
looks like they dropped even lower, anyone getting better than 5.375? i hope not
I couldn't see what the 30yr rates were, but the 15yr rates did change. When I first started the application a couple days ago, the rate was 4.75% for a 15yr. I cancelled out of the application prior to finishing it because I had some questions and when I went back the 15yr rate is now 4.625%, which is what I jumped in on. The 10yr was really tempting at 4.25% but the increase to my monthly payment would have been a little much.
Very hot deal.....thanks for the thread PHL1365.
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