GolfVenture Posted February 21, 2013 Share #1 Posted February 21, 2013 Citi Mortgage (my current morgage co) has a special offer to existing customers with great credit, excellent payment history and employment history. 3.125 % loan for 15 years, with absolutely no cost to me and no penalty for paying the loan off early. Some of their good customers are being offered great refinance rate so in order to keep them with Citi Mortgage, they are offering this special program rather than potentially loose them to their compeititor. Absolutely no closing cost and if the loan fails to close for any reason even if citi mortgage has incured some cost still no cost to me. I will still make the same monthly payment and payoff in 22 months as schedule. It is just that if for some major unforeseen thing happens we have an extremely low monthly payment requirement. If I stay on track and pay the house off in 22 months, we will pay about $1000.00 less on our very last payment. A $1000 is better in my pocket than in their pocket. Has others received similar offers from their mortgage co. Are there any pitfalls that I might not know of? Link to comment Share on other sites More sharing options...
2WHEELSFORME Posted February 22, 2013 Share #2 Posted February 22, 2013 I'm using Citi also. Going from a 7.5% to a 4.25% 30 year. And this is on an investment house. But I will have to say Suntrust is trying also. They are refiniancing an upside down loan without an appraisal changing the rate from 6.5 to 4.2 although they do have closing cost they are rolling it in. Anyway changing a payment higher than my rent to making it a positive cash flow is a good thing. And as said the loan is much higher than the worth. Not walking away from a negitive loan to value is not an option for me. The program with both companies is the Home Affordable Refinance Program (HARP) Link to comment Share on other sites More sharing options...
Mel Posted February 22, 2013 Share #3 Posted February 22, 2013 Citi Mortgage (my current morgage co) has a special offer to existing customers with great credit, excellent payment history and employment history. 3.125 % loan for 15 years, with absolutely no cost to me and no penalty for paying the loan off early. Some of their good customers are being offered great refinance rate so in order to keep them with Citi Mortgage, they are offering this special program rather than potentially loose them to their compeititor. Absolutely no closing cost and if the loan fails to close for any reason even if citi mortgage has incured some cost still no cost to me. I will still make the same monthly payment and payoff in 22 months as schedule. It is just that if for some major unforeseen thing happens we have an extremely low monthly payment requirement. If I stay on track and pay the house off in 22 months, we will pay about $1000.00 less on our very last payment. A $1000 is better in my pocket than in their pocket. Has others received similar offers from their mortgage co. Are there any pitfalls that I might not know of? Wow, our car won't even be paid off in 22 months. Link to comment Share on other sites More sharing options...
reddevilmedic Posted February 22, 2013 Share #4 Posted February 22, 2013 Corrupt to their core.....funding civil wars in Sierra Leone and other places...funded Enron...bailout spending.... Link to comment Share on other sites More sharing options...
eazyduzzit Posted February 22, 2013 Share #5 Posted February 22, 2013 Sounds like a no-brainer to me. I kind of wish my house wasn't paid off. Mortgage rates are greatvright now! Link to comment Share on other sites More sharing options...
straycatt Posted February 22, 2013 Share #6 Posted February 22, 2013 I did the re-fi on the HARP program with Citi a year ago. There was no down side. It's bacially free money. I dropped my payment by $180 and there were NO fees. I give it :thumbsup2: Link to comment Share on other sites More sharing options...
KIC Posted February 22, 2013 Share #7 Posted February 22, 2013 We just did a refinance with Chase ( signed the papers last night) they dropped my interest rate 2.5% ( to 4%) and saved me $400.00 per month at no cost to me. Link to comment Share on other sites More sharing options...
Blackjack Posted February 23, 2013 Share #8 Posted February 23, 2013 A response to everyone and anyone with a mortgage: To claim or lead you to believe that there is "no cost" is a misrepresentation and a fallacy. There are always Closing Costs in a mortgage transaction, it is just a matter of how YOU are going to pay them. In fact, there are always four expenses, which can be explained thusly: Lender Fees are any and all fees paid to the Lender for Origination, Underwriting, Processing, and actual expense of the interest rate. Third-Party Fees are any and all expenses paid to the other vendors that provide services on your behalf, such as Appraisal, Title, Closing, etc. Pre-Paid Interest and Escrow: pre-paid interest is just the daily expense of interest from the date your loan funds through the end of that month; the escrow account, if you are going to have one, is set up so the lender can pay your tax and insurance bills when they are next due (I don't personally consider the escrow set-up a Closing Cost, since you are going to pay taxes and insurance anyway). Government Taxes & Fees: counties and states charge either a mortgage tax or a deed tax (always on a purchase, possibly on a refinance), also there are usually two different recording fees, which are clerical expenses at the county courthouse to manage and handle your soon-to-be-public documentation. I agree that it can be set up in such a manner that there is no apparent or up-front expense to you, but you would always be getting/accepting an above-market rate, meaning that you will pay more monthly over the life of the loan. That's not necessarily a bad thing, it's just not been properly explained to you. Most lenders dangle a carrot in front of your face and lead you to believe that they are offering you the best deal available. Unless the lender shows you all of your options and explains the math, you would not know what is best to do, in your particular situation. As a personal courtesy to all on this Forum, I will be glad to review any offers you receive, help you understand the math (keep in mind that a mortgage is about money and money is about math), and actually show you all of your options. I will also tell you how to "shop and compare" one lender's offer versus another. That way you can comfortably be assured that you are actually doing something that really is in your own personal best interest. Yes, I am and have been in the mortgage business for almost 20 years, but this is not a solicitation. I am, thankfully, very busy, but I will always be glad to share my knowledge with my Family and Friends. Perhaps a few of you that have spoken with me previously will chime in and let others know that I am very straight-forward about this subject. Call me at 770-736-8350 or click on the link below and fill out the form (the info comes to me only and is not shared or sold) and I will be glad to be helpful... Link to comment Share on other sites More sharing options...
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