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Received a UPS letter package yesterday regarding refi'ing through Harp 2.0 with my current Citi mortgage. The paperwork explains the neede qualifications, and states my current rate and term 5.625/30 along with the offered options of a new 30 year at 4.625 or a 22 year at 4.625. The ad specifically states "no cost to you", and the fine print doesn't hint at any other fees.

So, my question is, what's the catch? Refinancing at my current term of 22 years at a full percent lower is a no brainer, especially if there are no costs.

When I first learned of Harp 2.0, I contacted them regarding my mortgage. I am eligible for Harp funds, but at the time, the could only offer a rate around 5% and a new 30 years. I had been trying to refi at a lower rate for 15 years, but was told that Fannie Mae rules wouldn't permit a 15 year.

My LTV is around 100%, I have a 2nd mortgage (which I know isn't eligible for Harp), and have never paid any PMI. Hence the reason I got a 2nd mortgage instead of putting down 20% 8 years ago.

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I wish I knew how to get this option from Citi.

Bosom (Jun. 24, 2013 @ 4:45p) |

i got this offer but it required paperwork, did yours require paperwork? Mine requires lots of paperwork

RagingBull (Jun. 24, 2013 @ 7:13p) |

Citibank isnt doing this because you guys have been great customers and they want to cut you a break (at the expense of ... (more)

KYBOSH (Jun. 24, 2013 @ 7:35p) |

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There's no catch, why would you think there is?
Many lenders are offering easy no cost refi these days

My past dealings with the large banks have skewed me.

But no doc stamps, title insurance, I just fail to see why they'd be so generous to the little guy.

I guess my follow up question is, how much over par are the citi brokers charging me?

There's no broker, no ysp etc

you are dealing directly with citi

Am I missing something, 4.625% sounds like a terrible rate in this market. Yes its better than your current rate, but you can do better.

I agree it's not great, but with no costs, heck, $50/month is worth saving. I plan on calling them Monday to find out any missing details, if there is anyone out there who can share any other knowledge, please do.

brandon032586 said:   Am I missing something, 4.625% sounds like a terrible rate in this market. Yes its better than your current rate, but you can do better.
At 100% ltv and no pmi and no closing costs it's not a terrible rate. You can't just go to a different lender and do better....dont just look at the rate, all the variables play a part

I used to get UPS envelopes every few months from Citi regarding refinancing the mortgage I had with them, so this is not unheard of. With the offers I got, the rates were poor and they only offered $500 off closing costs, which was pretty useless. A no cost (and possibly streamlined) refi would definitely be worth considering, especially if a better deal comes along in the next couple of years due to the FOMC keeping rates low through 2014.

Regarding the low rates into 2014, I thought I could be able to squeeze a better rate out of them as well. I plan on contacting them tomorrow to see if I can work out a better offer. I will keep the thread updated with my results.

Contacted Citi, was able to get some other offers out of them.

There is still the 22 year 120k refi at 4.625% APR and no closing costs.

They offered a 20 year 120k refi at 4.2% APR with $4300 closing costs.

They also offered a 15 year 120k refi at 3.8% APR with $4300 closing costs.

I ran some numbers and calculators, at this point, I'm considering the no-cost refi at 4.625% and paying an extra $50/mo principal, which will keep my payment the same as it is now, but help cut down the length of the loan.

Input?

Maybe Citi is going through their portfolio looking for mortgages that they can not locate the note for and sending out these refi offers?

I think a no closing cost loan at 4.625% is pretty good, given a 100% LTV...just my opinion though, I am a favor of not paying closing cost when I can...

If you are unable or unwilling to refinance elsewhere, then you should definitely take the offer. Even if the rate is above market, it is still better than what you have now, so in absolute terms you are better off - especially if there are no closing costs.

The only caveat is that rates might go even lower and you can only do the streamlined refinance once. As they say, however, a bird in the hand is worth two in the bush.

I got this letter also. What I asked, and did not get an answer to was - what if the worst case scenario occurs and I have to foreclose? Can they come after me?

I received this no cost offer also at 4.75%. Apparently they are getting HARP money for making and closing out these offers (see similar thread: Chase refinance discussion). I called and there is no bargaining as far as I can tell. They give me the option of staying with 21 years left or starting over at 30. Obviously the payment is lower with the 30, but its hard to compare the two loans.

If anyone has closed already did they credit your taxes, doc stamps, credit search and title fee back (e.g. a true no cost)?

I just completed mine. Absolutely no cost...there were closing costs but was given a "credit" for them so the net was zero...the notary came to my house in the evening...they actually hounded me to get it done.

Perhaps it's Citi's little way of begging you not to consider foreclosure.

ETA: If the above is true, you might want to see if you can negotiate for a lower rate, stressing that things are very tight for you financially, and you would leap at an offer of, say, 4.3% (still no-cost). Then see if you can settle for, say, 4.5%. Just a thought.

spankyj said:   
I ran some numbers and calculators, at this point, I'm considering the no-cost refi at 4.625% and paying an extra $50/mo principal, which will keep my payment the same as it is now, but help cut down the length of the loan.

Input?


Is the original post correct in that the rate is the same for 30 or 22 year?

Take the 30 year, and put the extra principal payments into the 2nd, assuming it's at a higher rate.



AsylumBoy said:   Maybe Citi is going through their portfolio looking for mortgages that they can not locate the note for and sending out these refi offers?

Thereby converting unsecured loans to secured loans.
That's what I've always assumed Chase was doing.

We're also almost done with our Citi refi. Signed papers on March 22 and the new loan starts April 2. They were backlogged in terms of scheduling the closing (we got the package in the mail in February) but once they got to us they got it done quick. The HUD-1 made it look like there would be closing costs but Citi assured us they were footing the bill for those and not to bring anything to closing other than ID, so we didn't. We went with the 30 year, going from 6.5% to 4.625%, and will continue to overpay, just wanted the flexibility of the lower payment should anything happen down the road.

As far as I know they had the note for ours, since Freddie was able to stamp it with "unrefiable" for however many years -- but it's also possible I'm just understanding the concept of the note incorrectly.

I'm confused. Why would you consider the 22 year option when the 30 year option is at the same interest rate?

I have a non owner occupied home. I received a 30 yr no cost refi offer of 4.625 from Citibank. Current rate 6. They hold my current mortgage I am not underwater and still have plenty of equity. I owe about 97,000, have excellent credit. This sounds great to me, except that they only offer the no cost streamline on the 30 yr. I owe about 23 years and would prefer a 15 yr.
Any suggestions. I assume the best is to refi at 4.625 and make extra princ. payments

Yep, just pay extra if you want

I got it as well, and my concern is the way they're rushing everything. A little paranoid voice in the back of my head says that Obama is going to declare some sort of mortgage amnesty for loans taken before a certain date as part of his presidential campaign, and the bank is trying to replace loans with newer ones so that they don't lose out. I just... I can't see what they have to gain from this. I asked the woman I spoke to at Citi, and she said that it was good word of mouth advertising for them. That I'd go and tell all my friends about the deal I got at Citibank. And that's such patent BS that it just made me more paranoid.

I also thought there was something they weren't disclosing as far as possibly points to be paid, but I called them and was told there were none. I have to assume they are getting some government funding as the person above stated, since there's no way there doing it out of the kindness of their heart! But my mortgage will decrease $225 a month, and right now my husband has serious health problems, so the timing is good. I did the calculations and found out that even though we only have 12 years left on our current mortgage, refinancing 15 years still comes out to about $4,000 less in payments, and we can always just pay the same amount and pay the loan off earlier. As far as anything further happening with lower rates in the future, just make sure your new mortgage has no prepayment penalty, then you can always refinance again.

I got one of these with Seterus/Quicken, all was great until they wanted me to bring my 240% LTV down to about 125% to close. While I have the cash to do so, I told them to pound sand, I'm not sinking more cash into my upside down loan! They then said fine but still asked for a 50k contribution. I told them no deal.

After reading the posts, I feel a lot better and will accept CitiMortgage's refi offer.

Hope this isn't too good to be true.
Offer is 3.625% for both ext. 30yrs. and 26yrs.
My current APR is 5%.
Should I hold out for an even lower rate?
I have excellent credit, 782.

I'm currently in the process of refinancing through Citimortgage... we currently have 6.25% and dropping to 3.625% saving 40k in interest. I just sent back the signed paperwork. I will let you know what happens.

They are buying the money at less than 3% (maybe less than 2%) and selling it to you at 4.625%. Sure it's better than your current rate, but they still make money. Possibly more than they are making off your current rate if the differential between the buy and sell rate.

After reading a lot of CitiBank/CitiMortgage Blogs I really got worried.
99% of all the blogs I read told me that this was a scam.
Going from 5% to 3.625% with 0 points and saving approximately $650 a month did seem too good to be true.

However, I was pleasantly surprised with CitiBank's service and am closing this Friday.
CitiBank requested very minimal paperwork and the process was well within their 90 day maximum constraint due to the inundation of refi applicants.

I spoke with CitiMortgage was offered 3.875% (from my current 5.875). They explained that I would save about 120. 00 a month. NO closing costs, no costs to me at all and a "credit" would show for closing costs.

But I see something that I do not understand:
"your adjusted aorigination charges $-709.50.

"your charges after all other settlement services $9, 901.44"

"total estimated settlement charges 8,381.94"

I'm a bit confused by this. Please go easy on me, I am dyslexic and numbers confuse me but it appears that I would be paying8.381.94. Or am I reading this wrong?

Please help. thanks.

rockeeeeeee said:   I spoke with CitiMortgage was offered 3.875% (from my current 5.875). They explained that I would save about 120. 00 a month. NO closing costs, no costs to me at all and a "credit" would show for closing costs.

But I see something that I do not understand:
"your adjusted aorigination charges $-709.50.

"your charges after all other settlement services $9, 901.44"

"total estimated settlement charges 8,381.94"

I'm a bit confused by this. Please go easy on me, I am dyslexic and numbers confuse me but it appears that I would be paying8.381.94. Or am I reading this wrong?

Please help. thanks.


Do they detail all the charges? Is there more to it than this?

Ot looks as if you'll owe them $8,381.94 at closing. Maybe theres a large balance in escrow on your existing loan that woudl get paid out and then put back into the escrow on the new loan?

Ask Citi?

One quick spot check you can use to identify possible "hidden charges": Look at the amount financed ... if it's greater than the amount of mortgage that you're refinancing, then added charges are likely the culprit.

I was thrilled about this offer and proceeded. Now, Citi is saying that I do not qualify because the house was put in a REVOCABLE TRUST (where I am the sole Trustee) after the originating date of the original loan. I don't understand why this would matter and from reading the Fannie Mae info on HARP, it doesn't sounds like that would not disqualify a person. Can anyone please help me with this? Thanks.

I was thrilled about this offer and proceeded. Now, Citi is saying that I do not qualify because the house was put in a REVOCABLE TRUST (where I am the sole Trustee) after the originating date of the original loan. I don't understand why this would matter and from reading the Fannie Mae info on HARP, it doesn't sounds like that would not disqualify a person. Can anyone please help me with this? Thanks.

thcenturydonna said:   I was thrilled about this offer and proceeded. Now, Citi is saying that I do not qualify because the house was put in a REVOCABLE TRUST (where I am the sole Trustee) after the originating date of the original loan. I don't understand why this would matter and from reading the Fannie Mae info on HARP, it doesn't sounds like that would not disqualify a person. Can anyone please help me with this? Thanks.

Fannie is a b1+ch, to conform to their underwriting standards you sometimes have to trudge through hell. Probably take it out of the trust and refi at 3.5 or better with Cashcall or Amerisave if you are good on credit. Just be ready to document to the end of the earth but worth it.

We closed on Jan. 18th, funded on Jan. 24th. Thank you Lord and CitiBank!

I couldn't find my post ...sorry about that.

jerosen said:   rockeeeeeee said:   I spoke with CitiMortgage was offered 3.875% (from my current 5.875). They explained that I would save about 120. 00 a month. NO closing costs, no costs to me at all and a "credit" would show for closing costs.

But I see something that I do not understand:
"your adjusted aorigination charges $-709.50.

"your charges after all other settlement services $9, 901.44"

"total estimated settlement charges 8,381.94"

I'm a bit confused by this. Please go easy on me, I am dyslexic and numbers confuse me but it appears that I would be paying8.381.94. Or am I reading this wrong?

Please help. thanks.


Do they detail all the charges? Is there more to it than this?

Ot looks as if you'll owe them $8,381.94 at closing. Maybe theres a large balance in escrow on your existing loan that woudl get paid out and then put back into the escrow on the new loan?

Ask Citi?


That's what I was wondering: if 8383.49 would be due at closing.

My escrow account never has to be more than just under 4000.

The total of the new loan is correct, with one month added (the month that you do not "pay"- but you really do, so that's not it, either).

They are calling this cost a "settlement charge" but from what I know, that means closing costs.

This is all very confusing.

I called Citi and spoke to a woman there who told me that those were "closing costs". (the 8,381.94) I told her that the GFE (good faith estimate) and that the agent I spoke to, assured me there were no closing costs. She then said there are "other loan products available".

Received 2 more calls since. 2 different agents from Citi. I assumed that they were calling in RE to this HARP loan.

They are calling me from a "LIST". (All of these agents are from city, who I have my mortgage with).

One guy offered me 4.75 and the other offered me 4.25 at 23 years. I told the both of them that I already have a GFE for 3.875 but have questions about the "settlement charges".

The second guy told me, "Go to the closing table. If there are any charges out of pocket, walk away". He told me that there should be NO closing costs. (then he said if I change my mind and don't want to work with the original agent, he could offer me a Harp SS Loan ). I asked him what that was. He said, Harp Super Streamlined Loan.

I asked what the difference was and he said there is no difference.

Anyway, I'm sorry this is long: I owe less than what my house is worth. I've never missed a payment. These "agent's" are telling me that these loans are legit, part of a Stimulus Program that the President implemented.

I just can't see how, if there are no "fees", "points", "costs", how are they making money? Why wouldn't they just let me keep paying 2 % more? I guess I'm from the "if it sounds too good to be true" part of town. If it ain't broke, don't fix it.

I don't know. I don't feel comfortable.

Again, sorry I didn't respond right away. I couldn't find my post, this sight seems hard to navigate at first. I didn't get any notifications that people responded. Sorry about that.

Skipping 12 Messages...
Citibank isnt doing this because you guys have been great customers and they want to cut you a break (at the expense of their shreholders and their bottom line).


NATIONAL MORTGAGE SETTLEMENT


Take a glance at the summarized Key Provisions of the settlement.



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