Wells Fargo Home Mortgage rates stayed low today, with 30-Year Fixed-Rate loans available at 4.875% interest. Homeowners with higher interest rate mortgages may want to meet with a lender to see if they can take advantage of these rates.
The quoted interest rates on Wells Fargo Home Mortgage assume that the borrower is purchasing a home with a down payment of 20% and has good credit.
Mortgage rates for refinancing may be slightly higher or lower than the quoted purchase rates, and borrowers can opt to pay additional discount points to qualify for a lower interest rate. Points, equal to 1% of the loan amount, are paid at the closing on the loan.
Today's 30-Year Fixed-Rate mortgage at 4.875% requires 1 point and has an APR of 5.065%.
Wells Fargo is reporting that 15-Year Fixed-Rate loans are currently available at 4.250% interest, with 1 point and an APR of 4.573%.nA 5-Year Adjustable Rate Mortgage (ARM)is set today at 3.875% interest with 1 point and an APR of 3.564%.
The rates quoted are for conforming loans, generally set at a maximum of $417,000. In areas with higher housing costs, homebuyers and homeowners can borrow a larger amount of money within federally-defined limits up to $729,750.
Borrowers of larger loans pay a slightly higher interest rate. For example, a 30-Year Fixed-Rate Larger Loan is offered today from Wells Fargo at 5.125% interest and a 5-Year ARM is offered at 4.250% interest.
Jumbo mortgage loans, which have higher interest rates, are required on loan amounts above the conforming limits. In areas with lower-cost housing, a jumbo loan is required for borrowers needing more than $417,000. The limits vary by location, but in the highest-cost housing markets, jumbo loans are for amounts above $729,750.
Homeowners interested in refinancing to take advantage of these low interest rates will need to provide full financial documents, have good credit, a reasonable debt-to-income ratio and have some equity in their home. Most lenders will refinance mortgage only for homeowners with at least 5 to 10% equity in their home.
Borrowers with less than 20% equity may need to pay private mortgage insurance, but refinancing into a low interest rate mortgage may still be optimal. Private mortgage insurance can be eliminated once the home equity rises above 20%, so some homeowners are opting to bring cash to the settlement table to pay down their mortgage and qualify for a new mortgage without private mortgage insurance.
Home values have fluctuated so much in most housing markets that homeowners may be uncertain of the current value in their own home. The best strategy is to meet with a lender (you can start with your current lender and then compare rates with other lenders) to determine whether refinancing is an option.
In international mortgage news, the Bank of China has opted to reduce the discounts for individual borrowers on mortgage loans. This means mortgage rates will rise. Other banks in China have not yet reduced their discounts.
Written by Michele Lerner
HULIQ.com
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