Refinance Closed

June 22nd, 2009

I finally closed my refinancing a few days ago and am happy to have that long chapter behind me. The process started way back in February and because of some ridiculousness by Countrywide and then several more hoops to jump through at Wells Fargo, it didn’t end until now.

At least I ended up with a 4.875% rate, which I couldn’t be happier about, especially considering rates have risen substantially since I locked.

I remain aghast, however, with how much waste and financial nickel-and-diming there is in the mortgage industry. All I did was change the rate of my existing mortgage with the same bank and pay the principal down a bit. That should have been achievable with a simple phone call, but instead took months of back-and-forth, credit checks, paperwork, and all the other trimmings of a full mortgage application. Not only does Wells Fargo get to keep my business but they also make money on all the fees, including escrow which shouldn’t even be necessary since it’s the same bank my existing mortgage was with. Now I know why Wells Fargo owns their own escrow company. I think it sucks that banks can do “mortgage modifications” for people in a few minutes over the phone but refinancings take forever and require full paperwork.

Anyway, the final hurdle is now cleared. Deconstruction is scheduled for early July.

4 Responses to “Refinance Closed”

  1. Jeff Says:

    Wow. Yeah, that really is just ridiculous. They know how to make their shareholders’ money :-).

    Congrats, and thanks for sharing as always.

    #1 - June 30th, 2009 at 10:53 pm
  2. Mike D. Says:

    Unfortunately, *I’m* a shareholder, and they are taking my money.

    You should get a free, instant refi if you are a Wells shareholder. :)

    #2 - July 1st, 2009 at 12:36 am
  3. Karl Katzke Says:

    If you think that’s bad, apparently Wells Fargo is suing itself over a short sale with multiple mortgages in Florida.

    #3 - July 14th, 2009 at 8:57 am
  4. Andrew K Says:

    I am with you – having just sold and purchased a new home… the plethora of nickle and dime fees made me less likely to buy and sell again any time soon, were the process smoother and more efficient I would be more likely to buy and sell and be comfortable with appropriate clear fees associated mortgages etc.

    Thanks for this site Mike – I am stoked to follow you journey in building your new pad – and actually got some interior design ideas from your architects portfolio.

    #4 - July 17th, 2009 at 7:14 am