Lower Your Monthly Payment
Can refinancing lower your monthly mortgage payment?
Let us help you explore your options and learn if refinancing is an option 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.
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
Find out more about our streamlined refinance.
Does my loan have prepayment penalties?
How long will I stay in my home?
How can I determine the break-even point?
Your monthly mortgage payment is typically made up of four parts:
Depending upon your property location, property type and loan amount, you may incur other monthly or annual expenses such as mortgage insurance, flood insurance, and homeowners association fees.
Eliminate private mortgage insurance (PMI)
Access the equity in your home without reapplying (if you qualify)
Refinance to a longer-term loan
Pay discount points to reduce your interest rate
Plan for an interest rate change in an adjustable-rate mortgage (ARM)
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 Help for Homeowners 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