Among today’s top U.S. financial institutions we can mention Wells Fargo (NYSE: WFC), which offers numerous loan options under its home purchase and refinance loan programs. In today’s mortgage summary we report on the latest changes in Wells Fargo’s mortgage interest rates. Borrowers must have strong credit standing to secure these loans and be willing to pay 1.00% of the total loan amount in origination fees to the lender. The lender’s latest, published mortgage interest rates for November 8, 2013 can be found below.
In the refinance loan arena, the 30-year fixed mortgage demands 4.375% in interest, while the corresponding APR is set at 4.547%. The lender’s 15-year fixed package could be an ideal alternative for certain borrowers, as it can be secured at 3.375% and carries an APR variable of 3.669%.
Those, who prefer refinance mortgages that come with lower down payments, may find the 30-year FHA-insured package a more suitable deal, as it’s listed this Friday at 4.250% and bears 5.766% by way of annual percentage rate.
Also, the lender offers adjustable rate mortgage (ARM) loans for borrowers seeking more interest rate flexibility. With these mortgage loans, the interest rate is fixed for a specified number of years then it’s adjusted to reflect prevailing interest rates at the time of the reset. Currently, the 5/1 ARM is quoted at a rate of 2.875% and it holds an APR variable of 3.033%. Others, who decide to choose the 5-year ARM FHA, will encounter a rate of 2.875% and an APR figure of 3.732%.
Other home refinancing options, which apply to larger loan amounts in eligible areas, include the 30-year FRM, which as of today starts at 4.500% and carries an APR of 4.629%. For larger loan amounts, Wells Fargo’s mortgage program also includes the 30-year fixed FHA deal, which can be used to refinance an existing loan. Currently, the aforementioned loan can be acquired at a rate of 4.250% and features 5.719% by way of APR. Those borrowers, who are deliberating the 5-year ARM with larger loan amounts, will see it being advertised at a rate of 3.125% and features an APR of 3.080%.
Moreover, non-conforming loans, including jumbo mortgages, are advertised by Wells Fargo. On Friday, the 30-year fixed Jumbo loan is carrying 4.000% in interest. The corresponding annual percentage rate for this loan is 4.112%. The 5-year ARM Jumbo offering is quoted at 2.250% and an APR of 2.765% rounds out the deal.
Please, check Wells Fargo’s website for updated loan information or contact the loan officer in charge for further questions.
In other mortgage-related news, Wells Fargo will settle to the tune of $335 million, effectively resolving claims of soured loans sold to mortgage buyers Fannie Mae and Freddie Mac. The high-risk mortgage securities were sold to both entities before the housing bubble and the accompanying global recession.
The financial institution said back on Wednesday in a regulatory filing that the claims were settled with Fannie Mae in the March 2013 quarter and with Freddie Mac in the recently-concluded September quarter. In all, the settlements totaled $335 million, and fall under the umbrella of the Federal Housing Finance Agency. Neither Wells Fargo nor FHFA provided further comment on the settlement.
Fannie Mae and Freddie Mac, which were bailed out by the government in 2008 following egregious mortgage losses, do not provide loans to consumers. Rather, the entities purchase home loans from financial institutions, and repackage these products as bonds and sell them to investors. This allows for greater loan availability, thus making Fannie and Freddie key players in the broader housing market; Fannie and Freddie own or guarantee close to half of all mortgages in the U.S.
As for the FHFA, the agency filed legal action against 18 financial institutions, including Wells Fargo, in September 2011 due to the sale of mortgage securities to Fannie and Freddie that soured in the advent of the 2007 housing bubble.