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You should start with them, sure, but definitely get other quotes. And you can play them off each other too.
In terms of "no fee no closing costs"... well I don't think that's possible - perhaps what you are looking for is to roll the costs of those into your new mortgage? So you owe $0 at closing?
Nevermind, I guess this is an option - basically the opposite of paying points... sort of negative points I guess. You'll just have to run the numbers and see if it's worthwhile - but taking a higher interest rate in exchange for less cash at closing is only better if you plan to keep the property for only a short while.
So if you know you'll sell in 2-3 years, go for it, otherwise be wary.
We went with the Wells Fargo 3 step no cost refiance last December.
Really easy. No appraisals. Nothing except sign off on paperwork with notary. Couldn't have been happier with the process.
I was at 4.875% 30 year form a loan back in beginning of 2009.
In late Nove 2011, Wells offered me 3.5% 15 years, or 4.125% 30 years no fee. The going rate for "fees" with other lenders was 3.875% for 30 years and 3.25% for 15 years.
So Wells Fargo obviously builds into the "no costs" about a 0.25% premium over market rate.
Right now, I believe (with excellent credit), you can get 3.5-3.625% no points 30 years fixed and 2.75%-2.875% no points 15 years mortgage. (My friend got a 15 year 2.75% no points a week or so ago).
So except Wells Fargo to offer you either a 3.75-3.875% no fee 30 year rate or a 3-3.25% 15 year no fee rate.
As the other poster said, choosing between Wells Fargo (if you are a current mortgage customer). It all depends on your overall time frame...how long do you want to stay in the home?
I went with the no fee 3 step because
1. I am 90% sure I will not be in the home in 2 years
2. The 10% chance I will be in the home after 2 years...I know the Feds have made statement they won't raise interest rates until 2014.
So I hedged my bets. If I am still in my home after 2 years, I will refinance if rates are much lower than my 4.125%....or I will just refinance to a 15 year rate because I am paying down the principal quickly with extra payments each month.
But definately take advatage of the no cost refinance program right now since rates are so low if you are not sure about staying or moving in a couple of years. You really have nothing to lose. There is absolutely no cost (besides notary charges...which we all know are free if you have a banking relationship with any bank).
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