I have a existing wells Fargo loan at 6% with a balance of 158k. My monthly payment is $1199.10 I received a call from wells fargo Mortgage guy saying he can offer the following rates with a no cost refinance. ( I assume the cost is built in). He also said there would be no appraisal or income verification needed. I would just receive the packet and go to the local wells fargo and notarize 2 pieces of paperwork. I would also have to meet a closing attorney and sign the closing papers at no cost to me. He said that is only required in GA where I live.
15 year =3.62% =$1145 monthly payment
20 year= 4% =$965 monthly payment
30 year= 4.25 = $760 monthly payment
I was told that this to reward me for always paying on time, though I suppose they want to keep my loan in there portfolio. I am also a owner of a home where Fannie is the end lender. I was wondering if this is a scam or are there in pitfalls that other may know. It seems like a slam dunk for me to take the 20 year at 4%. This drops my rate by 2% and lowers my mortgage payment while lowering the life of my loan. This sounds to good to be true, and everyone knows the old adage. I have been talking with this mortgage guy for a couple months and just finally decided to pull the trigger today as I feel rates could rise. The odd thing that struck me when we started the process on the phone was that he said I was the first to do this in GA. Any and all advice is greatly appreciated.
