OK, unless you need specific answers, i can give you this quick response. You cannot buy the property through the first look program TIP FOR FREDDIE MAC INVESTMENT LOANS. Some of you have read my posts on HARP and realize that HARP is a product you can apply for with your current lender but can. Adjustable- Rate Mortgage (ARM) Refinance – Wells Fargo. Skip to content. Banking. Loans and Credit. Insurance. Investing and Retirement. Wealth Management. Rewards and Benefits. Naveg. Seleccione el enlace si desea ver otro contenido en espa? Let us help you decide if converting to a fixed rate makes sense for you If you have an adjustable- rate mortgage (ARM) loan that recently adjusted or is about to adjust, you may want to explore converting, or refinancing, to a fixed- rate mortgage. How does an adjustable- rate mortgage (ARM) work? Like many homebuyers, you may have been attracted to the low initial interest rate of an adjustable- rate mortgage (ARM). While adjustable- rate mortgages may have lower initial interest rates than fixed- rate mortgages, the lower interest rate is only for a set period of time. ARM Features. The interest rate on an ARM can rise or fall after the fixed period based on market or index rates while the interest rate of a fixed- rate mortgage does not change during the life of the loan. ARMs have an initial fixed- rate period, when rates and monthly payments may be lower than fixed- rate loans. When the fixed- rate period ends, the monthly payment adjusts based on the type of loan you have. Your interest rate (and monthly payment) will rise or fall based on the market rate or index. You may gain protection from rising interest rates and future payment increases. Fixed- rate loans provide predictable monthly principal and interest(P& I) payments. Wells Fargo offers a variety of convenient fixed- rate mortgage options. Tip 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. Los Angeles, CA: Wells Fargo Bank NA is facing a potential consumer banking and lending violations class action lawsuit alleging it violated California consumer laws. Wells Fargo offers different types of loans for its customers. Learn more in our review. Find latest news coverage of breaking news events, trending topics, and compelling articles, photos and videos of US and international news stories. What should I know about refinancing my current ARM loan? In some situations, an adjustable- rate mortgage may be a good choice for you, but keep in mind that the interest changes at a predetermined time and may change every year. Reasons to consider keeping your existing mortgage. If interest rates are low, your ARM’s interest rate and monthly payment could go down. Your lender will notify you about any changes in rate or payment. If the difference in your ARM’s adjusted interest rate and the rate on available fixed- rate loans is small, consider the number of reduced monthly payments it will take to offset the costs of refinancing. If you’re planning to sell your home in the near future, it may be less costly for you to accept your ARM’s payment adjustment, since you may not recoup the closing costs often associated with refinancing before you move. Compare fixed- and adjustable- rate mortgage estimates with our rate and payment calculator. ARM refinancing options. You may want to consider refinancing to a new ARM if you can match the amount of time you think you’ll own your home with the new ARM’s initial fixed- rate period. Find out about Wells Fargo’s adjustable- rate loan options. If you expect to remain in your existing home for a longer period of time, a fixed- rate mortgage protects you from rising interest rates and has fixed monthly principal and interest payments for the entire mortgage term. Fixed- rate mortgage features. A shorter loan term provides faster equity growth and requires less total interest payments. A longer loan term has lower monthly payments and may provide greater potential tax deductions. Learn more. What are the benefits of refinancing? When interest rates are low, you might consider refinancing your mortgage. Refinancing may allow you to replace your current loan with a new mortgage that has better terms. Here are some of the potential benefits of a refinance. Increased cash flow. Your loan’s monthly payment typically decreases with a lower mortgage 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. Potential to switch to a different loan type. 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. Opportunity to access the equity in your home. 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. How can I decide if refinancing may be right for me? Your home may be the largest asset you have. Before deciding to refinance, be sure to consider the following so you can make an informed decision. Determine your estimated costs. When you refinance, you may pay: An origination charge, which may include fees such as application or processing. Discount points to lower your interest rate further. Consult your tax advisor regarding deductibility). A prepayment penalty if your current loan has a penalty for early payoff. Other settlement charges such as appraisal, credit report, title search, and title insurance fees. 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. Find out more about our streamlined refinance. Ask your title or closing agent if you qualify. Assess how much longer you’ll stay in the home. If you plan on owning the home for an extended period of time, and the interest rates are 1/2% to 5/8% lower than your current rate, refinancing may be the right choice for you. Determine your break- even point. Your break- even point occurs when your savings from your new loan equals the cost of getting the new loan. Additional considerations. Keep in mind that you are starting over. Refinancing replaces your existing loan with a new one. If you refinance back to the same loan term on the new mortgage, you may pay more additional interest than you would save by lowering your monthly payment. Use our refinance calculator to help determine if refinancing may be right for you. What home financing basics should I understand? If you obtain home financing, you'll repay more than the amount you borrowed. How much you repay is determined by several factors, including your interest rate and loan amount. Here are some terms you should understand. Interest rate. The interest rate is the percentage of your loan amount we charge you to borrow money. Interest rates are based on current market conditions, your credit score, down payment, and the type of mortgage you choose. Check today's rates. Discount points. One point equals 1% of your mortgage amount. If you qualify, you may be able to pay one or more points to lower your interest rate. A lower interest rate means lower monthly mortgage payments. Points are usually tax deductible. Consult a tax advisor regarding tax deductibility. On refinances you may be able to finance points as part of your mortgage amount. Origination charge. On a mortgage, this amount includes all charges (other than discount points) that all loan originators (lenders and brokers) involved will receive for originating the loan. The origination charge covers items including fees, document preparation, and underwriting costs, and other expenses. On refinances, if you qualify, you may be able to finance the origination charge as part of your loan amount. Loan term. Your loan term is the amount of time you have to pay off your mortgage balance. Shorter loan terms typically mean higher monthly mortgage payments, but often have lower interest rates. If you pay off your mortgage balance within a shorter term, you may pay less in total interest than with a longer- term mortgage. Remember that interest rates only tell part of the story. The total cost of a mortgage is reflected by the interest rate, discount points, fees, and origination charges. This total cost is known as the annual percentage rate (APR), which is typically higher than the interest rate. The APR lets you compare mortgages of the same dollar amount by considering their total annual cost. Monthly mortgage payment. Your monthly mortgage payment is typically made up of four parts: Principal. The part of your monthly payment that reduces the outstanding balance of your mortgage. Interest. The part of your monthly payment that goes toward the cost of borrowing the money. Taxes. The part of your monthly payment that goes toward property taxes charged by your local government. We typically 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. The part of your monthly payment that pays for homeowners or hazard insurance, which provides protection against losses from property damage due to wind, fire, or other risks. Like taxes, insurance costs are usually collected and paid from an escrow account. Depending upon your property location, property type, and loan amount, you may have other monthly or annual expenses such as mortgage insurance, flood insurance, or homeowner association fees. Video - The components of a mortgage payment. Watch this video to understand what makes up a typical mortgage payment – principal, interest, taxes, and insurance – and how they can change over the life of the loan. Check today's rates to see our current interest rates. How will you evaluate my home financing application? When you apply for home financing, we generally use these four main criteria to assess your application. Income. Do you have a reliable, continuing source of income to make monthly payments? Income can come from primary, second, and part- time jobs, as well as overtime, bonuses, and commissions. You may use other sources of income if you want them considered for payment, provided they can be verified as stable, reliable, and likely to continue for at least three years.
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