Is it believable that a mortgage lender could offer a low-cost refinance loan at 3.75% for a fixed 30 years?

After inputting data at the BankRate.com website we received a half dozen offers from mortgage companies all over the country. Most of the offers were for rates around 5% and processing fees well over $1,000. We began working with a California company that offered a 30 year fixed rate of 3.75% with total out-of-pocket fees of $550.00. When I asked how this was possible, I was told that the company had "private investors" who would be providing the mortage funding and paying most of the standard processing fees.I went through a number of due diligence steps to verify the company was ligit, and all indications were positive. The initial loan application steps were exactly as expected based on previous mortgage applications. But now I am becoming skeptical and a bit concerned.Should I have recognized that a 30 year fixed rate mortgage at 3.75% for $550.00 out of pocket costs was too good to be true?What is a reasonable rate for a low cost refinance mortgage for a borrower with great credit and all the right factors? by scprangley from , . May 14th 2011 Reply