Balance on "no-cost" HARP refinance is higher???

Almost without fail, you will not get the best deal in the market at your current lender. Also, when dealing with WF, you are dealing with unlicensed application clerks, not licensed mortgage professionals. There are a multitude of reasons why that may be the case. But generally speaking, a NO-COST loan is simply achieved by raising your interest rate high enough to cover a little, a lot, or all of your costs. It would appear that the rate they are offering is simply not high enough to cover all of the costs. Contact a local NON-bank lender for a second opinion.

I would get a second opinion because you might find a smaller company to help you with your loan with lower rates and fees. I only lend in Florida but I would try someone local.

Your balance is higher because you are paying some closing costs & they have added it back onto your loan amount. What is the interest rate that Wells is offering you for this program? Are they requiring you to have a new appraisal?I am in Murfreesboro, TN & would be happy to take a look at your loan docs they sent & advise you of your options availabale in this market.Nancy RelefordChief ManangerHome Equity Mtg., LLC2670 Memorial Blvd.Murfreesboro, TN.37129www.homeequitymtg.comnancyreleford@homeequitymtg.com

You should absolutely challenge the bank on this... and as others have indicated, you won't get the best deal by going back to your current lender.. Most "no costs" loans really don't exist... you either pay a higher rate, effectively spreading the closing costs over the life of the loan, or you pay for it up front. But if you think about it, who works for free!! the title company has to be compensated for their insurance policy and for preparing the documents... the lender certainly has to be compensated for putting the loan together... so how do these people get paid... the answer is, from you... you pay a higher than the going rate, the investor pays the broker more than the face value of the loan, and he takes part of that difference and pay's your costs.. Before you sign anything, you should give a local broker a chance to quote you on your HARP refinance.. WilliamAcres.com

$1,200 in closing costs is not that big of a deal over the life of the loan. There will be closing costs on ALL mortgages; the question is how you pay for them. There are 3 ways to pay for them... Up-front out of pocket (loan balance stays the same); Up-front added to loan balance (no out of pocket costs); and "no-cost" which is really lender paid. In a "no-cost" mortgage, the lender charges a higher interest rate, and uses that profit to pay the costs for you. This is good, because you do not have to pay for them out of pocket, or have them added to the loan balance. This is bad, because now you are paying higher interest for the life of the loan, and this could amount to paying 3-4 times the actual costs in extra interest. The real question here is what rate are they offering you. My bet is in another week, when HARP 2.0 is opened up to all mortgage originators, you will be able to significantly beat their offer.Don't rush to take this. You have waited this long, another week to get a better deal is a small inconvenience. Make arrangements with a local Mortgage Banker/Broker. We will all have the program March 19th. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com