conversation: User (CrepeDragonball): "My home's estimated value is $630,000. The loan amount is $203,790. I am currently looking to refinance my loan since I am paying 5.1% interest.\n\nThe interest rate Wells Fargo quoted me is 4.375%. The loan is a fixed rate, conventional 20 years loan. \n\nLooking online, I see the interest rate for the similar terms should be in 4-4.1%. However, I don't understand how the rate was quoted. How can I tell if I am getting a fair deal.\n"
  Self: "Are you paying closing costs? If so, how much?"
  User (CrepeDragonball): "No closing cost according to the Wells Fargo agent I spoke with."
  Pescodar189 (Pescodar189): "I did a 'no closing cost' refinance a few years ago.  It wasn't with Wells Fargo, but it was with another major bank.  It worked out well for us, but they did try to include a lot of stuff that I was unaware of up front.  Some of it we managed to remove, and some of it we had to pay (or else not go through with the refinance).  My recommendation is to read all of the paperwork they send you and watch for every fee or surprise.\n\nOur loan was only a couple of years old, and the same bank that already owned the loan (after it had been sold a few times) was the one with whom we were negotiating the new loan.  That allowed them to skip a couple of the due-diligence steps because they owned the loan either way.\n\nOur new rate was about 0.375% over the competitive market rate, but because of the no-closing-costs and because the result was a lower rate than our original mortgage, it was a good deal for us.\n\nGood luck!"
  