# 20 minute (no cost) refinance 1.75% rate drop



## labotomi (Feb 14, 2010)

I was looking into refinancing my home for a reduction interest rate and lower payment. I had talked to a few banks including my own NFCU and could get about the same interest rates with 1% origin fee and sometimes a partial to full point discount fee.

My mortgage is held by Wells Fargo so I called them as well. They offered me a rate that just 1/8% over the best I was offered by the other banks but the difference is that there was absolutely no cost to me. No origin, discount not even an appraisal.

The only thing that changed was my interest rate and it did add one year to my term since they only had 30, 20 and 15 year terms, but the savings of $251/month would easily be worth that even if I didn't make additional payments.

I'm not sure how many other banks or lending organizations offer similar programs, but it was the best and easiest 20 minutes I've ever spent on the phone saving that much money.


I'd encourage anyone who has a mortgage and hasn't already looked into lowering their rates to at least give your mortgage company a call.


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## DJgang (Apr 10, 2011)

Good deal. Probably helped offset that payroll increase that expired and any increases in health insurance that may be sure to come.


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## labotomi (Feb 14, 2010)

DJgang said:


> Good deal. Probably helped offset that payroll increase that expired and any increases in health insurance that may be sure to come.


An increase that expired... I suppose you'd be happier if there hadn't been a decrease in payroll taxes at all. That way there wouldn't be anything to expire.

I'm paying my share of FICA and Medicare again just as I did in previous years (actually the maximum possible for over a decade). I have enjoyed the decrease, but never expected it to last forever and certainly was not caught by surprise when it expired.

Nothing is changing for our healthcare. My company is self insured and many divisions have employed a general practitioner to handle _non work related_ medical issues including distributing prescriptions for generic medicine at no cost or copay to the employees. Anything work related goes through another path. This keeps the general practitioner completely separate from issues relating to disability, workman's comp or any injuries related to work.

I suppose I should be bitter that I had to pay the higher interest rate to begin with instead of being happy that I was able to get it reduced... No, I think I'll be happy.


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## DJgang (Apr 10, 2011)

You really are a tad bit of an ass, aren't ya? 

Did I say anything about being happier or some crap, geez?

The payroll tax cut expired and went back up...did i say anything about being happier if it decreased. Aw forget it, I was trying to be nice to you, back on ignore neighbor. :surrender:


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## labotomi (Feb 14, 2010)

DJgang said:


> You really are a tad bit of an ass, aren't ya?
> 
> Did I say anything about being happier or some crap, geez?
> 
> The payroll tax cut expired and went back up...did i say anything about being happier if it decreased. Aw forget it, I was trying to be nice to you, back on ignore neighbor. :surrender:


I didn't see the reason to turn my post into a jab at the payroll tax and/or obmacare. I just wanted to let others know that they may have a easy way to reduce the interest rate on their home.

Why do you declare when you are putting people on ignore?


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## LincTex (Apr 1, 2011)

labotomi said:


> I'm not sure how many other banks or lending organizations offer similar programs, but it was the best and easiest 20 minutes I've ever spent on the phone saving that much money. I'd encourage anyone who has a mortgage and hasn't already looked into lowering their rates to at least give your mortgage company a call.


I am also with Wells Fargo. What exactly should I ask for when I call? Did you talk to a local branch, or the national headquarters?


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## labotomi (Feb 14, 2010)

LincTex said:


> I am also with Wells Fargo. What exactly should I ask for when I call? Did you talk to a local branch, or the national headquarters?


I called 1-877-937-9357 and told them I was looking to refinance and asked what they had available.

I'm not sure what would make someone eligible for this program, but it's related to TARP. I qualified even though I'm not upside down, not over 80% LTV, and haven't missed any payments. Other than that, I'm not sure what they would look for.


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## LincTex (Apr 1, 2011)

I am going to give it a shot. 
I bought the house 3 years ago and have 18 years left on a 30 year mortgage, according to the printed amortization schedule. I also have never missed a payment and usually pay a couple hundred more each month on top of the $936 monthly payment.


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## LincTex (Apr 1, 2011)

http://finance.fortune.cnn.com/2013/02/15/mortgage-refi-borrowers/?iid=obnetwork

Why some homeowners are turning down free money
February 15, 2013: 5:00 AM ET

Borrowers who are still smarting from the mortgage crisis are passing up some real deals and missing out on real cash.
By Becky Quick

FORTUNE - 
American homeowners are in the midst of a hot and heavy love affair with low interest rates. 
But not every courtship has a happy ending.

As the final days of 2012 slipped away, Lisa Price made her client an offer she thought he couldn't refuse. Her client -- we'll call him John Doe -- was paying a rate of 6.616% on his $435,000 mortgage, with 25 years left to go. Price, a mortgage banker for Quicken Loans, offered to refinance his loan at 4.125%, keeping the 25-year payout time. The deal would have knocked his monthly payments down to $3,383, a savings of $630 a month. Closing costs were minimal and would have been recouped through the savings within four months of signing. And with the streamlined process she proposed, it would have required very little paperwork and wasn't contingent on any appraisal valuation. It seemed like a no-brainer. But John Doe said no thanks.

"It didn't make any sense," says a stunned Price, reflecting on the rejection. "Usually when I call someone with a deal like that they're really excited."

It's typically pretty easy for mortgage brokers to give away money, and indeed, refinancing activity has skyrocketed as interest rates plummeted in recent years. The one group of homeowners who didn't participate in the refi boom -- those whose home prices tanked, leaving them without enough equity in their home to qualify for refinancing -- are now eligible to restructure their loans thanks to a new government program. But as Quicken Loans and other mortgage originators have learned, it can be surprisingly difficult to persuade some of these people to take sweet deals like the one above, even when the government is greasing the skids.

The first government assistance programs after the housing bubble burst offered to help homeowners only after they stopped paying their mortgages. But a later program -- the Home Affordable Refinance Program (HARP) -- was designed specifically to help out those underwater homeowners still paying their mortgages on time by giving them access to the low rates so many others are enjoying. HARP has been refined several times since its inception in 2010, and every version of the plan has made it easier for homeowners to qualify. But getting the word out hasn't been easy.

Quicken and other mortgage originators have aggressively tried to let homeowners who qualify know about the program. "We get their home number, the business number, their e-mail, we express-mail packages to their house so it looks serious," says Dan Gilbert, founder and chairman of Quicken. "We leave messages; we tell them, 'Go look up HARP on Google and you'll see it's real.' We don't quit." And yet almost half of these homeowners don't respond. "If you would have told me all the facts about how this works before, I would have predicted we'd get 80% to 85%," Gilbert marvels.

Ultimately, Quicken says, only about 25% of the homeowners who qualify for HARP actually end up refinancing. And that's the shame of it all. HARP is a smart program. It rewards good behavior -- those who have continued to pay their mortgages -- while lending a helping hand to those who could really use it. And it attempts to even the playing field by giving more Americans fair access to the low interest rates enjoyed by big businesses and the wealthy. This program is also good for the economy, as consumers spend much of the money they save on their mortgage payments.

So how do the government and mortgage originators convince the public to take advantage of a program that can truly help many who need it? It's the classic lesson of once bitten, twice shy. Wounds from all those no-money-down loans and balloon payments have yet to heal for the homeowners bitten when the housing bubble burst. Others still feel the sting of paying hundreds for appraisals in an attempt to refinance, only to be spurned when their homes were valued at less than they owed on the mortgage. It may be hard for those consumers to trust again anytime soon. But for those with the courage to give it another go, love might actually be better the second time around.

This story is from the February 25, 2013 issue of Fortune.


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## PreparedRifleman73 (Nov 2, 2012)

DJgang said:


> Good deal. Probably helped offset that payroll increase that expired and any increases in health insurance that may be sure to come.


Wow! Take it easy! Haha totally kidding. Yeah, I have no idea how this was taken offensive but eh, whatever!


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## majmill (Jun 6, 2012)

I would love to take advantage of refinancing but I own a double wide and no institution will even consider it! There are over 300 double wides in the retirement community, that's a lot of people who can't take advantage, most of us lower middle class.


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## JayJay (Nov 23, 2010)

majmill said:


> I would love to take advantage of refinancing but I own a double wide and no institution will even consider it! There are over 300 double wides in the retirement community, that's a lot of people who can't take advantage, most of us lower middle class.


Quicken Loans is the last place to look for a refi...trust me, they dropped the ball twice in 5 years with our refi.


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