Refinance with Wells Fargo with no closing costs?

[DisneyBeagle]

My mortgage is currently with Wells Fargo and I contacted them to see what their rates/charges for refinancing would be. The person I spoke with said that we qualified for their no cost refinance. I have to admit I'm a little skeptical....it sounds too good to be true. Does anyone have any experience with Wells Fargo's no cost refinance?

 

[EMom]

My mortgage is currently with Wells Fargo and I contacted them to see what their rates/charges for refinancing would be. The person I spoke with said that we qualified for their no cost refinance. I have to admit I'm a little skeptical....it sounds too good to be true. Does anyone have any experience with Wells Fargo's no cost refinance?

We've had friends use WF for this and "no cost" did not mean "free." What it meant is that they didn't have to come to the table with money in hand to refinance. Instead, WF will roll the costs of refinancing into your new loan. You still pay for it, just not upfront. If your previous loan is a recent one, they may not require a new survey, etc. But I've never know the WF "no cost" ones to actually be "free."

 

[njcarita]

done the no cost refinance 3 times with them.... and there are NO COSTS and NO FEES rolled back into loan.......No surprises..... u do pay a higher interest rate than with their "fee"loans.....but its an easy streamline refinance

 

[EMom]

If that's what they're really doing now, then you just have to do a cost analysis to compare apples to oranges. Yes, with a lower interest rate (even if it's not the BEST interest rate out there) your payments will be lower, but are you going to refi for 30, 20 or 15 years? There are so many variables that I can't say whether it's a good deal for you. DH and I refinanced once and not only lowered our interest rate, but went from 30 to 15. The payment was not much higher and the house was being paid off much more quickly. (It was a big rate drop.)

If it's much of a rate drop at all, and there are truly no costs to be rolled back in (as has happened to friends of mine) then it's worth running the numbers on. Heck, even if costs are rolled back in, it never hurts to do the math and see if it's worth it.

But here is something to consider. Run a separate set of figures.....Where you PAY closing costs and get the lower interest rate. See how long it takes to recoup those refi expenses. Two years? More? Less? After you "get that money back" that lower interest rate will save you $X every month over the "no cost" amount. If you plan on staying in the house several years, it may make more sense to pay the refi costs and get the lower rate. It all depends on how the numbers fall.

So much depends on the rate you currently have, what the no cost rate will be, the "cost" rate will be, how long you plan to stay in the home, etc. There is no one set answer because there are too many variables and only you have the numbers needed to get to the answer.

 

[DisneyBeagle]

We've had friends use WF for this and "no cost" did not mean "free." What it meant is that they didn't have to come to the table with money in hand to refinance. Instead, WF will roll the costs of refinancing into your new loan. You still pay for it, just not upfront. If your previous loan is a recent one, they may not require a new survey, etc. But I've never know the WF "no cost" ones to actually be "free."

This is what I'm afraid of.

done the no cost refinance 3 times with them.... and there are NO COSTS and NO FEES rolled back into loan.......No surprises..... u do pay a higher interest rate than with their "fee"loans.....but its an easy streamline refinance

This is how it was explained to me by Wells Fargo, but I was wondering if there were any hidden costs. The rate is .125% higher than what we could get doing a regular refinance, but then we would have to pay closing costs. We're not positive we're going to stay in this house for more than a couples years, so it seemed like a good deal.

 

[tvguy]

Never paid any fees out of pocket in either of my 2 refinances, they were rolled into the new mortgage. But my fees never were more than $500.
Not with Wells Fargo though, although Wells Fargo did purchase my last mortgage (about a month before I paid if off).
I think the biggest issue to consider is what works for you. For us, getting the house paid off was priority one. It was a lifesaver when I lost my job not to have a house payment anymore. And it also has made paying for our kids college easier. And if need be, we can always get another mortgage if we need to use the equity to pay our kids college tuition.

 

[golfgal]

Even if they do roll closing costs into your mortgage, often you recoup that money in a couple years and end up saving thousands in interest over the life of the loan. You always have the option to pay any costs up front too. It is worth checking into if you can lower your interest rate by a point or more.