Wells Fargo homeowners, like homeowners with other lenders, have been turning to refinancing in order to make their mortgage payments more affordable. Interest rates on 30 year fixed-rate mortgage are around 5%, so many homeowners are using this low mortgage rate in order to get a lower monthly mortgage payment.
Homeowners that have been struggling to make their mortgage payment have often had to turn to the home loan modification program, which can be a difficult road to take for many homeowners. It is for this reason that some homeowners have turned to refinancing instead so that they can lock in a lower interest rate and a lower monthly mortgage payment.
Many lenders, not just Wells Fargo, have been seeing record low mortgage rates and many homeowners have been able to refinance for these record low rates and have seen their monthly mortgage payment drop. While a 30 year fixed-rate mortgage can be beneficial, homeowners need to keep in mind that they may pay more over the long run with a 30 year fixed-rate mortgage, even with a low interest rate.
Also, homeowners are thinking about refinancing need to look at their personal financial situation and make sure they are financially able to afford the costs that come with refinancing their mortgage.