Wells Fargo homeowners that are looking to refinance their mortgage or homebuyers looking to buy a home for the first time are turning to a 30-year fixed rate mortgage for a number of reasons. The primary reason being that the 30-year mortgage not only brings a lower mortgage rate, in many cases, but also a lower monthly mortgage payment for those who qualify.
Homeowners that are looking to refinance have, over the past months, been seeing record-low mortgage rates available. While current rates on the 30-year fixed rate mortgage are still around or a little over 5%, this remains a very low rate for some homeowners.
Homebuyers, also, are turning to this fixed mortgage for the lower interest rate because of the lower mortgage payment it brings as well. Homebuyers are finding more affordable homes and with a low interest rate many are finding that buying a home is currently well within their financial means.
Keep in mind that these mortgage rates aren’t only with Wells Fargo, but other lenders as well. However, no matter the mortgage lender, a homeowner or homebuyer needs to be sure they are on a firm financial ground before they refinance or buy a home and be certain they can afford the costs.