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Old 08-13-2012, 12:39 PM
 
835 posts, read 4,121,144 times
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I logged into my Wells Fargo online account and saw the headline that I can participate in a 3 step refinance program which will lower my interest rate. I called Wells Fargo mortgage consultant and he told me that there is absolutely no fees associated with refinancing!

Why would Wells Fargo give me low interest rates without any hidden fees?

Anyone has experience with Wells Fargo 3 step (absolutely no fees) refinance program?
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Old 08-13-2012, 12:46 PM
 
Location: Pearland, TX
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Because they lock in an annuity for 30 years, that's why. They generally offer it to folks who have a mortgage that is less than 3 years old or so, either 15 or 30 on the refinance. And, yes, there are no closing fees. None.

Ronnie
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Old 08-13-2012, 12:49 PM
 
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>> Because they lock in an annuity for 30 years,

I asked them about the new mortgage after refinancing and they told me it will be 15 years which is what my current mortgage length is. Also there is no early payment penalty.

I am kinda suspicious about these offers since if it sounds too good to be true it probably is!
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Old 08-13-2012, 01:12 PM
 
Location: Houston area
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Another reason to consider is that if they don't offer it to you, many home owners are looking at refinancing right now with other banks. Very few end up with the original bank.
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Old 08-13-2012, 01:21 PM
 
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Hi City Love,

That is what they told me!
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Old 08-13-2012, 01:25 PM
 
1,826 posts, read 2,648,142 times
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Quote:
Originally Posted by marykate1 View Post
I logged into my Wells Fargo online account and saw the headline that I can participate in a 3 step refinance program which will lower my interest rate. I called Wells Fargo mortgage consultant and he told me that there is absolutely no fees associated with refinancing!

Why would Wells Fargo give me low interest rates without any hidden fees?

Anyone has experience with Wells Fargo 3 step (absolutely no fees) refinance program?
I did it about a year ago. No fees, no closing costs, close at home and mail the packet. Everything on the up and up and exactly as they said.

I went from 5.75% to 4% on a 30 year fixed. At the same time I switched to bi-weekly payments instead of monthly - cut a huge sum off the cost.
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Old 08-13-2012, 01:37 PM
 
Location: Cypress, TX
931 posts, read 2,615,510 times
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Quote:
Originally Posted by marksmu View Post
I did it about a year ago. No fees, no closing costs, close at home and mail the packet. Everything on the up and up and exactly as they said.

I went from 5.75% to 4% on a 30 year fixed. At the same time I switched to bi-weekly payments instead of monthly - cut a huge sum off the cost.
Wow, I'm calling them right now if there's no fees and closing costs. I'm at 5% on a 30-year note with Wells and am looking to refi for 15 years.
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Old 08-13-2012, 03:11 PM
 
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Originally Posted by kreeyax View Post
Wow, I'm calling them right now if there's no fees and closing costs. I'm at 5% on a 30-year note with Wells and am looking to refi for 15 years.
You have to already have your mortgage through Wells Fargo to do it. I scoured that thing to find a cost, but there were none....it was a true no cost refinance. Nothing was rolled over into the note and I paid nothing out of pocket.

The dollar amount of my mortgage once complete was exactly the same as before...only difference was the interest rate. It was a great deal.

The only "catch" was that you had to fit perfectly inside the program...there were no exceptions to the qualifications...I had to pay off my second note to do it, but I needed to do that anyway. It just gave me some incentive to do it.
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Old 08-13-2012, 03:41 PM
 
Location: Cypress, TX
931 posts, read 2,615,510 times
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Quote:
Originally Posted by marksmu View Post
You have to already have your mortgage through Wells Fargo to do it. I scoured that thing to find a cost, but there were none....it was a true no cost refinance. Nothing was rolled over into the note and I paid nothing out of pocket.

The dollar amount of my mortgage once complete was exactly the same as before...only difference was the interest rate. It was a great deal.

The only "catch" was that you had to fit perfectly inside the program...there were no exceptions to the qualifications...I had to pay off my second note to do it, but I needed to do that anyway. It just gave me some incentive to do it.
Yep, I already have Wells Fargo Home Mortgage for my current mortgage. Just waiting for someone to call me back now, they weren't available to talk when I called. Wish I would have known about this sooner when the rates were lower.
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Old 08-13-2012, 04:11 PM
 
Location: Cypress, TX
931 posts, read 2,615,510 times
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OK turns out to get the no application or appraisal fee, no closing cost refinance you'll end up paying a much higher rate. I was quoted over 4% on a 15 year refinance for this deal, so it really isn't that hot. If I want a 3.125% rate with them I'll end up paying $3200-$3800 in closing costs and fees. So I guess the much higher interest rate is the "catch".
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