Wells Fargo Three Step Refinance With No Cost

While in the middle of our refinance, I received a letter from Wells Fargo (who currently owns our primary mortgage) giving me an opportunity to refinance with them through a simplified process that would cost us nothing to reduce our interest rate or even change the term of our loan.

The program was called the Wells Fargo Three-Step Refinance System program that would basically allow me to reduce my interest rate by .25% and reset my loan term to 20 or 30 years. It pitched a simple refinance process that had no costs to the customer and closing paperwork that Wells Fargo would mail to you, you sign, get notarized, and mail back.

While the rate offered to me wasn't very competitive with the rate I am refinancing with (4.625% vs 4.375%), it does offer a key benefit. Its a no closing cost mortgage - if you can reduce your interest rate and not incur any costs to do so, its a no brainer, refinance. If Wells Fargo is offering this type of program that means most lenders are as well.

Since I am already pursing a refinance Im going to pass on this opportunity, but if I wasn't considering refinancing, I would jump all over this. For anyone with a 30yr mortgage at 4.75% or more, this type of program might be helpful even if you haven't considered refinancing.

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Comments (7)


That would be cool but so far I have seen not a lick of anything similar for Citi Mortgage, who does our loan.

Funny you comment on this today. I spoke with Wells Fargo last week and locked in a rate on Friday for 4% for a 15 year loan. I could have gotten 3.875 (with 1 point back) or 3.75 (with .6 points back) but it had an origination cost of $1000 and the other fees would have roughly equaled the 4% rate. Also the no hassle piece is really nice. I will post back to let you know how well it hopefully ends up going!

Also check out americaninterbanc.com I used them for my last refinance which got bought by wells and they tend to have very good rates!

A few years ago, I had a mortgage with Wells Fargo at 7.00%. I called them to discuss the refinance and they offered this program. My rate went to 5.125% with no costs or fees. My loan is now paid off but it was an awesome program.

Wells Fargo is runnings a scam refinance offer. They told my mother they would cover all costs in refinancing under their 3 step program and HARP. They sent her paperwork asking for $900 dollars. Why don't the regulators fine these crooks.

Yes, it is true that Wells Fargo is offering the Three Step "no cost" refinacing. I should know, since I am a Home Loan Consultant with Wells Fargo Home Mortgage. On Monday August 1, 2011 Wells Fargo will be originating the Three Step "no cost" refinance to the Georgia market. Call 404-845-4604 or email me at Jean.Andersen@wellsfargo.com to learn if your mortgage with Wells Fargo is eligible for this loan program. Remember, the mortgage balance stays the same, but, your interest rate goes down. Homeowners can lower the interest rate, shorten the loan term, or change from adjustable interest rate to a fix interest rate. The program is available on primary and seconday "vacation" homes only.

I hate to say it, but anyone that passes up a FREE refinance is truly stupid! Try and argue with me that it makes sense to pay more... Even if your rate is only .25% higher...

If someone from wells fargo contacts you saying the loan is free but asks for money up front THERE IS A REASON YOU DON'T QUALIFY for the 3-step loan. Freddie mac and Fannie Mae set most of the guidelines on this program. Do some research and find out why you aren't eligible...just like any other company wells Fargo sends out flyers of you might e eligible. IF YOURE MAD ASK THE REP WHY YOU AREN'T ELIGIBLE!!!!!

The 3 step program is offered through Freddie Mac and Fannie Mae. It's part of the bailout from over 3 years ago. If you pass up a free refinance you truly are stupid! There are guidelines around that program just like any other government program. It is NOT a modification, it is a refinance! Of course there is no such thing as a free lunch so you do pay a slightly higher rate for the convenience of no cost. If you're skeptical, go ahead and take a lower rate and pay fees... That simple! The harp program allows you to refi even if you're upside down. Do some research people instead of reading people's experiences who have no idea what they're talking about! Of course once again there are restrictions aroun the program... SET BY THE GOVERNMENT! Go to fanniemae.com and read the guidelines. Once again... If you're not eligible, ask the loan officer! There has to be a reason they turn down the loan.

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