Wells Fargo (NYSE:WFC) the largest and most respected mortgage lender is providing assistance to homeowners struggling to make payments and at the same time continuing to write thousands of mortgage contracts every week.
Low mortgage rates have resulted in a swell of refinance mortgage applications. Wells Fargo is offering 30 year fixed rate mortgages for refinance at 4.25% with a 4.639% APR. Competitors Bank of America (NYSE:BAC) and Chase Bank (NYSE:JPM) are quoting 4.375% for the equivalent loans but have APR’s that make the offerings approximately equal.
FHA 30 year refi’s are just 3.75% with a 4.375% APR making the FHA program very attractive relative to the conventional loans.
15 year fixed rate refi’s at the bank are 3.25%. Bank of America is at 3.625% and Chase Bank even higher at 3.75% for the same loan.
5 year ARMs are 2.625% and FHA loans are 2.75%.
Wells Fargo like many of the other lenders are conducting events and campaigns to help borrowers avoid default and foreclosure. Homeowners may be steered toward HAMP and HARP programs for loan modifications to get monthly payments down, or perhaps be encouraged to refinance and take advantage of much better current interest rates.