Reduce Your Interest Rate
Trying to decide if you can benefit from reducing your interest rate?
We can help you learn about your options and decide if refinancing may be right for you.
- Your loan's monthly payment typically decreases with a lower interest rate.
- With a lower payment, you can use the extra funds for retirement savings, paying other debts, saving money for college, or other purposes.
- If you have an adjustable-rate (ARM) or a balloon mortgage, reduced interest rates may make a fixed-rate mortgage more desirable, especially if you want the stability of an interest rate that does not change over time.
- If you have a long time left on your mortgage, lower interest rates may make it possible to switch to a shorter-term mortgage.
- You can pay the principal balance down and build equity faster.
- You are may pay less interest over the life of the loan with a shorter term loan.
- If you have a jumbo loan you may be able to refinance to a "blended jumbo" (Mortgage + Home Equity Financing).
- While you're lowering your interest rate, you may want to consider using the equity in your home to pay for major purchases or to make home improvements.
- This type of loan is known as a cash-out refinance.
- See how much available equity you have for a cash-out refinance with a Free Refinance Analysis.
Before you decide to refinance to repay your loan faster, consider the following so that you make a well-informed decision:
What are the estimated costs?
When you refinance, you may pay:
If you're an existing Wells Fargo Home Mortgage customer, you may be eligible for a streamlined refinance with no closing costs, application, or appraisal fees.1
Does my loan have prepayment penalties?
How long will I stay in my home?
How can I determine the break-even point?
- Principal is the amount of money you borrowed.
- Interest is the cost of borrowing the money.
- Taxes are the property taxes charged by your local government. Typically we collect a portion of these taxes in every mortgage payment and hold the funds in an escrow account for tax payments made on your behalf as they become due.
- Insurance refers to homeowners or hazard insurance that provides protection against losses from property damage due to wind, fire or other risks. Like taxes, insurance costs are typically collected and paid from an escrow account.
|If your goal is to:||Keep in mind:|
|Reduce monthly payments|
|Repay your mortgage faster|
|Access home equity while lowering payments or repaying faster|
|Plan for an adjustable-rate mortgage (ARM) interest rate change|
|Access the available equity in your home without reapplying (if you qualify).|
Learn more about establishing and improving your credit
- Do you pay your bills, loans, credit cards, and other debts on time?
- We examine your payment habits before deciding to loan you money.
- Your credit history and credit score are also examined prior to deciding to loan you money.
- It's a good idea to check your credit history and correct any problems before applying.
- Do you have enough funds for closing costs?
- You may use funds from a savings account, certificate of deposit (CD), investments, and retirement fund.
- In some cases, you may be able to use a gift from a relative, friend, employer, or not-for profit organization.
- In many cases you will also have to demonstrate that you have additional funds in your accounts to cover several months of mortgage, tax, and insurance payments.
- What is the market value of the property?
- We will order a property appraisal to make sure your property's value meets our underwriting requirements.
|If you're struggling to make your monthly payments, or think you may have difficulty making payments in the future, find out about possible options that may allow you to keep your home in our Get Help with Payment Challenges section.||The Wells Fargo Home Equity Assist program was created to help home equity customers through difficult times. If you're having financial difficulties, you may be eligible for a reduced monthly payment or gain more time to repay your loan.|
Brent D. Miller
Home Mortgage Consultant
NMLSR ID 404017
Toll Free: 1-800-643-0528 Ext.8638
10900 NE 8TH ST Suite 1430
Bellevue, WA 98004