No cost refinancing?

• McFly1955

  

  Bought our house in 2008 - financed through local credit union at 5.875
  
  Looked into refinancing last year and since we will probably move in 5-10 years, the costs just didn't work out to justify refinancing.
  
  A friend of my wife's just refinanced with Huntington, around 4%, no fees/no closing costs, nothing.
  
  
  The person they went through is going to call us tomorrow to explain the process, but she already talked to someone at Hungtington today who said we could get 3.99%, no closing costs, nothing.
  
  Called the credit union and they said we could refinance, but it would cost in the neighborhood of $2,500.
  
  
  My understanding of these 'no cost' refinancing plans was that, there is no cost up front, but you typicaly pay a slightly higher rate long term to make up for the 'no cost' aspect. In our case, 3.99% kills our 5.875%, so just quickly researching online, I can't think of a reason not to proceed.
  
  Am I missing something? I have a call into my mortgage broker friend for some advice, but haven't heard back yet, and I figured who better to ask than all you geniuses?
  
  
  TL;DR
• Devils Advocate

  

  You should be able to do a no cash refinancing threough the bank that has your mortgage. Just tell them you want to refiance your rate only. If they hedge, tell them that they have to do it, or they will lose the mortgage all together.
  
  I just did this 2 months ago. I did have to pay 225.00 to have them rewrite the contract. There were no other fees. I refinanced at 4.173 percent at 15 years and dropped my payment 240.00 a month. My loan also shotened it's term by 4 years.
• Steel Valley Football

  Con Alma doesn't care what his rate is because things like that don't matter to him.
• Commander of Awesome

  

  I'm sure LJ and crynasty will pipe in.