Refinance question

[572Daytona]

I got a letter today from my current mortgage lender (Washington Mutual) offering me a refinance with no appraisal, orgination or closing costs. It is also a no doc loan, they asked me a couple of disclosure questions over the phone and will be mailing my closing papers for me to sign and notarize and send back to them.
What's the catch? I will drop 1/2 percent off my current interest rate and drop my monthly payment just by signing a few papers. I'm guessing it is worth it to them since the term of my loan is back to 30 years again instead of 27? Anyone have any experience with loans programs like this, anything I should be wary of?

[Kilrtoy]

crazy guess only.
its better to keep you , than lose you all together. Now-a-days with everyone refiing, they are looking ahead as not to lose you or all that money

[ChumpChange]

Just read everything four times when you get it in the mail. Many times, lenders will offer no fees on the front end and put them on the back end. That is why you must read it all very closely.

[572Daytona]

I'm so used to mortgage companies selling the loans it's hard to imagine them wanting to keep anyone, but you may be right Kilr since they did say they planned to service and not sell my loan. And good advice about reading everything (I will), I did ask the rep multiple times if they were going to add anything to the loan balance, he did say they would add prepaid interest which makes sense because I will effectively skip a monthly payment with the new loan, and add the initial escrow balance (and they will refund my old balance).

[Starloans]

Just make SURE they are not adding any cost to the loan. It is quite common to drop .5% with no cost and have a good deal for the lender and borrower. And yes, WaMu being a bank that keeps most of their loans can sometimes do it cheaper than a lot of mortgage brokers such as myself.
Also insist on NO PREPAYMENT PENALTY! WaMu has them so double check. Mostly WaMu is a good lender with good programs.
Here's the deal. I've had borrowers come to me from WaMu, Wells, BofA, other brokers, etc. Some borrowers love'em and some hate'em. It all depends on the guy or gal in the branch when you go in. Some are experienced and some are idiots. Idiots in banks keep independent mortgage banks and brokers in business.
I would go for it if everything checks out.

[NashvilleBound]

Just make SURE they are not adding any cost to the loan. It is quite common to drop .5% with no cost and have a good deal for the lender and borrower. And yes, WaMu being a bank that keeps most of their loans can sometimes do it cheaper than a lot of mortgage brokers such as myself.
Also insist on NO PREPAYMENT PENALTY! WaMu has them so double check. Mostly WaMu is a good lender with good programs.
Here's the deal. I've had borrowers come to me from WaMu, Wells, BofA, other brokers, etc. Some borrowers love'em and some hate'em. It all depends on the guy or gal in the branch when you go in. Some are experienced and some are idiots. Idiots in banks keep independent mortgage banks and brokers in business.
I would go for it if everything checks out.
when did you learn all this????
I will never, ever(whchever one is longer) use WaMu for any loan ever! again.
I added to your Reputation too:)

[welk2party]

Many banks have programs like this for retention. Just make sure you read all the disclosures when it comes to fees and penalties.

[Starloans]

when did you learn all this????
I will never, ever(whchever one is longer) use WaMu for any loan ever! again.
I added to your Reputation too:)
Like I said, some people love'em and some hate'em. I see both sides. Thanks for the point. :cool:
Now when are you coming back to VC?????????????
Having any luck getting rid of your sled????
What'cha gonna buy?:
Do you miss us????? :D