Re-financing my existing mortgage. What am I missing here? UPDATED.

A couple of things.... First, this doesn't appear to be an actual offer. This is a teaser to get you to "contact the lender." Second, they only list the lender fees. There will be title costs, probably an appraisal fee, and possibly points depending on where rates actually are when you apply for the loan.

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Am I missing any hidden cost?

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get a good faith estimate from them, but yes rates are extremely low right now.

Update.

I spoke with New Penn Financial and asked him what competitive advantages does his company provide over the next lender.

1. Reasonable fees, being flat rate.
2. Direct contact with loan officer. Simply deal with one person.
3. Size. Even though they did $111 million in loans last month, they are able to move quickly. Average time for a loan to close is 2 to 3 weeks.

Lock period is standard 30 days, but can be extended to 45 days at no additional cost.

For 15 year loan, standard rules apply. No prepayment penalties, no points, no buy-downs.

Rate, right now, based upon credit worthiness, LTV and how much I plan to borrow is at 2.99 %.

He estimated that my total out of pocket expenses will be $995 for flat rate to New Penn + $3500 in closing costs.

A rated with the Better Business Bureau and they are based out of Pennsylvania.

Anything else I need to be leery of?

Will, I would also take a look at a 30. The reason why is that having a higher payment means your return on the extra money is only 2.2% after tax. That's pretty damn poor. It happens that I ran the numbers myself last week under the following assumptions:

1) 30 year mortgage at 4%
2) 15 year mortgage at 3%

For both I assumed that I had a monthly amount to invest equal to the monthly payment of the 15 year note. For the 30 year mortgage that meant I invested the difference for 30 years. For the 15 year mortgage that meant I simply paid the mortgage for 15, then invested the whole thing for 15 more.

Under most circumstances the 30 year was slightly (but only slightly) better. The only time the 15 was demonstrably better was assuming investment returns are 3% (after taxes) or less for the next 30 years. If over 8% the 30 year was clearly better.

Great suggestion, but I have to be real honest here and say I don't know if I would treat the 30 year loan as a 15 year loan. I'm sure, like most, I would find another way to spend that money. Many people have great intentions, but often lose sight, focus and get off track of their goal(s).

The best thing for me is that after 15 years, I won't have a house payment. And for me, that gives me a greater peace of mind.

Fair enough, my analysis explicitly assumes investing the difference.

I don't mean to take this too far on a tangent, but I figure I'll ask here rather than start a new thread. Anyway, what's the best way to get an appraisal on a home, if not necessarily intended for impending resale?

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You should consider a 30-year loan, and just pay it like a 15-year loan. That way, if your income stream is disrupted you have some flexibility

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For that purpose an interest-only option costs less of an interest rate spread.

Update.

I'm in the process right now of working with New Penn Financial. My mortgage loan consultant has been great to work with. Very responsive to e-mail and phone communication.

Just locked in my new rate. 2.875 % for 15 years, no points, no buy-in, etc. - 30 day lock, but will extend to 45 day if no difference.

Thus far, no surprise charges and everything has been straight-forward.