I got a letter today from my current mortgage lender (Washington Mutual) offering me a refinance with no appraisal, orgination or closing costs. It is also a no doc loan, they asked me a couple of disclosure questions over the phone and will be mailing my closing papers for me to sign and notarize and send back to them.
What's the catch? I will drop 1/2 percent off my current interest rate and drop my monthly payment just by signing a few papers. I'm guessing it is worth it to them since the term of my loan is back to 30 years again instead of 27? Anyone have any experience with loans programs like this, anything I should be wary of?