US Bank No-Closing-Cost Refinances & Mortgages

Can I get a no closing cost refinance with US Bank if I'm a customer? I want a low cost refinance mortgage loan.

I am a US Bank customer and if i go to refinance in the same bank, would they charge closing cost or not? Other banks such as Wells Fargo and Quicken Loans won't charge their clients closing costs if they refinance with them.  I want to get a no closing cost refinance mortgage loan.  Can I get a no closing cost refinance with US Bank if I'm a customer?  I want a low cost refinance mortgage loan. 

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  • Speak with your loan officer at US Bank and compare loans.
  • Make sure that a no closing cost loan really has no costs.
  • Shop around for the best refinance rate and compare different lenders that offer no closing cost or low cost refinance loans.

I recommend you speak with US Bank and ask them if they would charge closing costs to refinance your home. You must keep in mind that it will cost a lender to refinance a mortgage, even though they may say “no closing costs.”

I also have two valuable resources as you evaluate refinancing with US Bank. The first a a profile of US Bank Mortgage and Refinance Provider that we did. The second is a link where you can apply for free for a refinance quote: Mortgage Refinance Quote.

Will Your Interest Rate be Higher?

When a lender says that there will be no closing costs, they generally give the borrower a higher interest rate. Below I will explain what a no cost mortgage refinance is.

Unfortunately, a no cost mortgage isn’t really cheaper over the long term. Instead of paying fees out-of-pocket, closing costs, or other costs at the time of the loan, the interest rate is .25 to .5 percent higher to cover the lender’s costs and any third-party fees the lenders promises you aren’t paying. The lender isn’t giving anything away for free.

Three Types of No-Cost Mortgages

  • No points, but you pay lender fees and third-party fees
  • Zero lender fees, but you pay third-party fees
  • No cash up-front, but all the fees and costs are bundled into the loan’s interest rate

A true no-cost mortgage would have the same interest rate as other loans and no payments to the lender or third parties. Understandably, these loans are nearly impossible to find.

Is No-Cost Mortgage Refinancing Right for Me?

This type of mortgage is best for people who plan to sell or refinance in a few years. If interest rates are steadily falling, then you can move from no cost refinance to no cost refinance without spending a dime on closing costs. If you want to stay in your home and never refinance again, then the higher interest rate will cost you more over the life of the loan.

For people who plan to stay in their homes for more than five years and don’t plan to refinance again, the best bet is to save up the money to cover the closing costs and fees on your mortgage and get a lower interest rate. It doesn’t seem like a lot, but the difference between 6.25% and 6.5% can really add up. On a $100,000 loan paid over 30 years, that totals $6,000 more in interest.

If you don’t plan to sell or refinance in three-to-five years and your closing costs are less than the additional interest, more than likely they will be, then it’s worth it to pay the closing costs up front. Even factoring in your tax deduction, paying the closing costs would still save you money over the long-term. The higher your mortgage balance, the more that extra quarter point will cost you.

Where Can I Get a No-Cost Mortgage?

You can find these types of mortgages at most lenders. Bills.com can connect you to several no cost mortgage lenders. You can also find them at most of the major banks and mortgage lenders. To avoid being overcharged for your mortgage, compare their interest rates and then research each potential mortgage lender’s reviews and customer comments on consumer Web sites and at the Better Business Bureau’s Web site.

No cost mortgage refinancing is a popular way to take advantage of falling interest rates. Just be sure to refinance to a lower rate and pay the closing costs before that additional interest really starts to add up.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

25 Comments

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  • FB
    Feb, 2013
    frances
    I was offered a loan for 2.99 interest no fees no closing cost and free appraisal through US Bank. I am retired and have 8 years to go on my loan 5.6 percent. This new loan will be for 5 and half years. Does this sound too good to be true?!
    0 Votes

    • BA
      Feb, 2013
      Bill
      On the face of it, it does not sound too good to be true. Just keep a careful eye on the GFE and the final documents you sign. If you have no out of pocket costs, then there is nothing to lose by moving forward. You have a three-day right of recision where you can cancel the deal, after the signing.
      0 Votes

  • UE
    Jul, 2011
    upset
    My spouse agreed to several debts upon our divorce as long as I left the pension alone and asked for no alimony. Since it was difficult for to make payments on everything, my spouse took out a second to consolidate and make payments easier. My name is not on the loan. Doesn't both names need to be on the loan if the mortgage was against a home both of our names are on? I now wish to Transfer the 1st but my spouse is wanting the second satisfied as well.
    1 Votes

    • BA
      Jul, 2011
      Bill
      Consult with an lawyer who has family law experience. In your state, you may need to sign a waiver to allow a second loan on a home on which you are listed on title. Or, your state may not have that requirement.

      Please report back about what a lawyer tells you on this issue.
      3 Votes

  • JV
    Apr, 2011
    joellen
    We were denied a loan, and we have perfect credit. We were told it had to do with our collateral and us having an adult daycare facility, and I do not. I do adult foster care for the DD & MR population. Is there any way for me to get back the money for the appraisal that they charged me for? THe apparaiser took several weeks for him to come out, and it seems like the bank had plenty of time before the appraiser came out to tell us that we did not qualify. I really feel it had to do withe the loan officer and I not clicking. Help???!!!??
    0 Votes

    • BA
      Apr, 2011
      Bill
      If you paid for the appraisal, you own it and have the right to bring it to another mortgage lender. Unfortunately, you do not have the right to a refund on an appraisal unless it was defective. Look at it from the appraiser's perspective. He or she took the time to look at your property, conduct research, and write the appraisal. He or she should get paid regardless of the loan closing.
      1 Votes

    • JV
      Apr, 2011
      joellen
      So can I really be turned down a loan because I do adult foster care in my home for up to two people?
      0 Votes

    • BA
      Apr, 2011
      Bill
      I cannot answer your question without knowing more about your financial situation and your mortgage application. Here are two examples of how providing foster care can either help or harm a mortgage application:
      1. If you are paid by the government for taking care of, for example, your elderly parents or a disabled family member, then the applicant may be able use the income.
      2. On the other hand, if you are running a business on the premises and the people you care for pay you directly, then the mortgage underwriter will consider this an income-producing property and may use that to decline the loan.

      Keep shopping. If you are declined again, then ask the loan officer why. If the answer you get is, "It's the foster care," then ask, "What exactly is it about the foster care that causes the problem?" Keep in mind, too, that different lenders can have different underwriting guidelines.

      0 Votes

    • JV
      Apr, 2011
      joellen
      Something interesting has occurred. The bank has called and said that they could offer me a 15 year loan at 4 1/2 % interest. And it wouldn't be a FMac or Fmae loan, but an in house loan. He said the higher ups are the ones that want this loan. When he said that I can really believe it, because this loan officer I felt like was either prejudice or he lied to me on the 1st day that I went in there. He told me he had a 10 yr loan at 3.75% interest, and when I tried finding out what I needed to bring down to lock on that loan, he became short. And when I got down there with all the info that he needed I felt like he was very put out, and didn't want to help us. (So I really felt like this had to do with this loan officer.) Well my question is when I told him yes we would take it, he said well it might take another month, because he has to start over. I just get the impression that this man doesn't want to help me and it was because of him that I have had all these problems, and I am wondering should it really have to take another month, and should I be accepting a loan at 4 1/2 % interest, expecially when I locked with him for a loan at 3.75% interest? I'd really appreciate any help that you have to offer. Thanks
      0 Votes

    • BA
      Apr, 2011
      Bill
      The only helpful thoughts I can offer are these:
      1. If you do not like the service you are receiving, apply for a refinance elsewhere. Take a look at the Bills.com refinance calculator to see how much you may save with a refinance, and which lenders offer the lowest rates.
      2. Mortgage servicers are backed-up these days, and loans that used to close in 30 days or less now take months.

      I cannot address your perception that the loan officer did not treat you respectfully. Again, if you feel that way, there are many other loan officers competing for your business who would love to speak with you.

      0 Votes

    • JV
      Apr, 2011
      joellen
      I would have a long time ago, but they have us where they want us, I've already paid for an appraisal and I don't want to have to pay again somewhere else.
      0 Votes

    • BA
      Apr, 2011
      Bill
      If you pay for an appraisal you own it. Ask the loan officer for a copy of your appraisal and shop elsewhere.
      0 Votes

  • 35x35
    Nov, 2010
    Do other banks offer no cost refinance loans, or just US Bank? Any advice on getting a no cost refinance mortgage?
    0 Votes

    • BA
      Nov, 2010
      Bill
      Other mortgage sellers offer no-cost refinances. This is one instance in life where shopping is the answer to your problem.
      4 Votes

  • TT
    Nov, 2010
    Tim
    Some of the bigger banks like Wells Fargo and Bank of America have their own streamlined process for NO COST Refinance, so you might want to talk to your current lender, first. Good luck! Tim Tysyachuk Wells Fargo Home Mortgage
    1 Votes

    • JC
      May, 2011
      jerry
      a want a 0 cost loan
      1 Votes

    • TT
      Jul, 2011
      Tim
      Maybe Wells Fargo Mortgage has a no cost or maybe a low cost mortgage.
      0 Votes

    • MZ
      Mar, 2012
      Mary
      I talked to Wells Fargo about a no cost refinance and I was told there was no such thing. Wells Fargo holds my mortgage. They aquired my mortgage from Wachovia. I talked to 7 different people from Wells Fargo the other day and I realy do not think any of them should be working for a Mortgage Company. I fially asked to talk to a supervisor and was told that there was not one available. I left my phone number and I have not recieved a call back.
      0 Votes

    • IG
      Mar, 2012
      Ivonne
      I currently have my loan with Well Fargo and they are offering me a no closing cost, no fee for refinancing deal. They claim that because I am good customer and they want to retain me, but I just don't believe them. I am currently on a 15 year loan and planning to pay off my house in 5 years and 9 months at 4.65%. They are offering me a 3.75% for 15 years. I think they will make their money in the length of the years. I told them that I want to pay my house sooner like 5 years a 9 months. They told me that just by increasing payments to my balance. I just don’t know if this is a good deal or not? Please advise me on this dilemma! Yvonne
      0 Votes

    • BA
      Mar, 2012
      Bill
      You mentioned a current 15-year (180-month), 4.65% loan, and that you are on track to retire the loan in 69 months. Are you making your agreed-upon payments or are you paying more than the monthly payment?

      Look closely at Wells Fargo's offer. I would be surprised if you were offered a true zero-cost refinance. Is Wells Fargo adding the cost of the refinance into the balance? If so, break out those costs and reply here so that we can run the numbers.
      0 Votes

    • LH
      Aug, 2012
      Lori
      Is 3.75 points normal for a mortgage refinance? I never heard of such high points for a refinance.
      0 Votes

    • BA
      Aug, 2012
      Bill
      Lori, yes, that seems an excessive number of points. Shop around to see how other offers compare. You can start by getting a free mortgage quote from one of the members of the bills.com lending network.
      0 Votes

    • BV
      Aug, 2012
      Bitter
      It's called a 3 step plan. I just finalized mine as they made me the same offer and I accepted. It was pretty painless and didn't cost me a dime. I dropped my interest rate from 6 1/8 to 3 1/4 and reduced it from a 30 year to a 15 year for about the same dollars/month. Extremely happy with this bank. I think anyone offered this should jump all over it.
      3 Votes

    • SE
      Mar, 2013
      Sharon
      wells fargo sent me a letter offering a no cost refi at a lower interest rate than I was paying and if I wanted this offer to call them and they would begin the process. we did take the offer ,it was done through the mail , the only thing I had to do was get the signed contract notarized. But after reading info here I really think they lost the original loan papers, since Wells had bought our loan from another company. And now they have brand NEW loan papers!
      0 Votes

    • BA
      Mar, 2013
      Bill
      Well, Sharon, who knows? Time moves in one direction, and you will never know if the refinance offer was the result of a hidden purpose, or the stated reason, which was to make money in the fees Wells earns in a refinance. Did the refinance cut your interest rate? If so, be content knowing you will pocket the savings over time, and will be one of the lucky homeowners with a rock-bottom mortgage when interest rates eventually rise.
      0 Votes