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Eliminate private mortgage insurance (PMI)
If your original down payment was below 20%, you’re probably paying PMI.
If you have made timely payments for a period of time, you may have established enough equity to eliminate PMI which could lower your monthly mortgage payments, without having to refinance.
Access the equity in your home without reapplying (if you qualify)
Combine a Wells Fargo first mortgage with home equity financing to provide the minimum 20 percent down payment needed to avoid PMI.
You complete only one application, work with a single contact, and attend one simultaneous closing transaction for both products.
You can choose from a variety of fixed-rate financing options.
Refinance to a longer-term loan
A longer-term loan can lower your monthly payments, but increases the total interest you’ll pay over the life of the loan.
You may have additional costs from the closing transaction.
Pay discount points to reduce your interest rate
If you plan on staying in your home for an extended period of time, it might make sense to pay discount points to reduce your interest rate.
One discount point – which is 1% of your loan amount – reduces your interest rate approximately 0.25%, reduces monthly payments and interest over the life of a fixed-rate loan, and may be tax deductible. (Consult your tax advisor on the deductibility of interest.)
Calculate rates and payments
Plan for an interest rate change in an adjustable-rate mortgage (ARM)
Adjustable-rate mortgages provide an interest rate and payment that may change (increase or decrease) over time, based on market rates.
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