Newbie Question - Refinance

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This is my very first refinance and I want to check with the experts here. I am currently going through a refinance with Wells Fargo. My original mortgage was with HSBC. I just signed my closing docs yesterday and have doubts and 3 days to back out. There are a list of fees that sum up to $5,000+, origination charge, Adjusted Origination fee, appraisal fee, Title services and lender's title insurance (settlement for closing fee,lender's title insurance, lender's title policy limit).

HSBC just came back to me and offered %3.0 rate and no closing cost, BTW Wells Fargo's %3.25. I am thinking of backing out way from Wells Fargo and try HSBC. I have asked my loan officer for what is the penalty for backing out but have yet gotten an answer and time is ticking. Am I taking a risk for backing out? Is "no closing fee" means I don't have to pay that $5k+ fee that Wells Fargo is charing me? 3.0% vs 3.25% rate alone worth it?

Thanks a lot!

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It seems you like have little understanding of the $5000 you see on your HUD-1. Some of the $ might be escrow and stuff you already paid for such as credit check, title proces, and appraisal. Also keep mind that a verbal rate quote means little. How much is the loan and term, 15 year?

You are right. I have little understanding of the HUD-1 but I think I omitted my escrow. The $5000+ is the sum of these only, Our Origination fee $899, Adjusted Origination fee $899, Government recording charges $385, title services and lender's title insurance $3,351.69. Would I have to pay these costs if I take HSBC's offer, "no closing cost"? The reason I am wondering is a friend who refer me to Wells Fargo said he didn't have to pay this on closing. The loan is 269,000, 15year at 3.25%.

thanks for your respond

you may not need to pay title , origination etc., if HSBC modifies your loan to a lower interest rate

Thanks for yor inputs! I think I am getting the picture. Wells loan officer called late at night telling me that's the deadline was next day before 5pm. So I went and signed it the next day thinking i was fixed at 3% but looking at the paper my rate was really at 3.25%. She did tell me about the higher rate but never confirmed. This unexpectedly time frame is messing my head.

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