I was somewhat shocked when a few months ago Wells Fargo (they hold our 1st mortgage) called and asked if I wanted to refinance at a rate about 1% below where I was at. They said the closing costs were minimal and an appraisal wasn’t needed. I just needed to confirm that our employment situation hadn’t changed for Kim and I. I asked what was the catch? It seemed rather strange for a bank to call me and ask if I wanted to lower my interest rate on my mortgage so they would make less money.
I started thinking about it and realized they were concerned about losing my business. I had been considering refinancing with another lender. It probably helped that we had high credit scores and no missed payments.
So we signed our name a few times and sat back while Wells Fargo did their thing. After about 6 weeks, they said the docs were ready and we could close.
We went to the title company yesterday and lowered our monthly payments by over $400! Yeeeee Hawwww! Our closing costs were so low we can pay those off in about 4 months.
It is a strange world to say the least. People wanting new loans struggle to qualify in this lending environment but then lenders are turning around and giving away money at lower interest rates. There is something seriously wrong with this picture. I think I know the answer but I don’t want to get political, only celebrate that we were on the right side of this transaction.