We were approved for a no-cost refinance. 4.75% over 20 years. Down from 5.5% on 30 years, down from 6.5% on 30 years when we started.
These no-cost own provider Wells Fargo mortgages are so easy. Basically you call up, give them a bunch of information, they may decide to do an appraisal or may not, they do a hard pull of your credit (mine is 803! DH’s is only 760 for some reason– we need to check his record), they send you a few documents to sign, then a few more documents and you’re done.
The one big thing to note is that you skip paying your mortgage for an entire month, so they add the interest that you would have paid into your mortgage, increasing the total amount. You can get around that by paying extra the month after or even better, before if you have the slush (you pay slightly less interest if you pre-pay before).
The other big thing to note is that the interest rate that they give you will be higher than the interest rate they would give you if you were paying the closing costs. I *think* that they do these no-cost things to keep you from refinancing at a lower rate with someone else. Which is a good idea. If we were still at 6.5% we would have paid someone else to refinance by now. (Wells Fargo currently offering 3.75% on a 15-year if you pay costs.)
So, very exciting for us! And no mortgage to pay for the next month… so no prepayments this month.
ETA: Financial Sam has a nice post encouraging you to refinance, even if it means plowing some extra money into your house.
If you have a house, have you refinanced or are you going to refinance any time soon? How much of a hassle is it?