Like many homebuyers, you may have been attracted to the low initial interest rate of an adjustable-rate mortgage (ARM). While adjustable-rate mortgages have lower initial interest rates than fixed-rate mortgages, the lower interest rate is only for a set period of time.
Is refinancing from an ARM to a fixed–rate mortgage right for you:
Refinancing may be an option for you to consider if your loan is adjusting to an interest rate that’s higher than the current market rates.
- Stability. You may gain protection from rising interest rates and future payment increases. Fixed-rate loans provide the security of predictable monthly payments.
- Loan options. Wells Fargo offers a variety of fixed-rate loan home financing options. We make the financing process streamlined and convenient.
Does refinancing fit my situation?
Determine if you’ll save enough to recover closing costs.
Your home may be the largest asset you have. It is important to consider the following before you decide to refinance:
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 the home?
How can I determine the break-even point?
What loan term will you refinance into?
Are there any additional considerations?
- 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.
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.
|Depending on your situation, you may want to explore fixed-rate refinance options:|
When your application is complete, we review the following four components:
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. Wells Fargo also offers a series of online credit education videos.
- 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.
Responsible lending guidelines
|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.
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Get an Estimate: Refinance Analysis