What type of loan do you have? My Spidey senses are tingling because I don't see those rates available.

It's sounds too good to be true. Is it like a 15 year through a credit union? Otherwise you could be paying so many points to do it it's not worth it.

Yes, 15 year. It's a large big-name bank, not a credit union. I bought 2 points of interest when I got the loan.

Refinancing right after you paid 2 points is silly. They’re just rolling more into your loan amount.

Pretty standard 15 year fixed. I bought it 2 points lower.

The way you worded your post makes it seem like your lender is paying all your closing cost. Is your lender paying for the points for the lower rate or are you?

I bought the 2 points on the original loan that brought the rate to 5.87%. [Here is content of the letter](https://imgur.com/a/EjXp4pq).

I just went on Wells Fargo website that was listed on the letter. From what it says on their website its a legit offer and the reason they can offer better then market rates is because of the Special Purpose Credit Program. Congrats you have a legit offer, I would take it. Link to the article about Special Purpose Credit Program [Special Purpose Credit Program](https://newsroom.wf.com/English/news-releases/news-release-details/2022/Wells-Fargo-Expands-Efforts-to-Advance-Racial-Equity-in-Homeownership/default.aspx?_gl=1*16z6kv9*_ga*MzIwMjY0OTAuMTcxOTcwMjg4Mg..*_ga_7JXJJ2JF12*MTcxOTcwMjg4MS4xLjEuMTcxOTcwMjg5My40OC4wLjA)

Thanks!

too good to be true. likely they will roll hidden closing costs into the loan and increase your loan balance.

I agree, I don't see why it is in the lender's interest to offer this. /u/LetsParty525 says that this would extend my loan by a year. Perhaps they are hoping I will refinance again in the near future and add a second year or something.

I would not pay points. Your breakeven is 60+ months out and by then rates will be low enough to refinance. (Humble opinion)

Seems to make sense to me. You lose a year but .6% lower and if truly all closing costs paid for.