Most people know that mortgage interest rates are incredibly low right now. The Federal Reserve’s current policy seems to be to keep them low for several more months. This could be why many buyers are purchasing homes right now, driving up the pending home sales here in Orange County.
Wells Fargo is becoming aggressive in their bid to be the lender of choice for home purchases. To that end, they are offering some incredible buyer incentives in several forms to assist with your home purchase. Whether you are obtaining a conventional mortgage or going to go FHA, they have several buyer options/incentives you should consider to either 1)bring down your interest rate and lower your monthly payment or 2)reduce the amout of cash you need to close the deal.
For instance…if you wanted to purchase a home, and your loan amount was going to be $417,000, and you were going to go FHA, you could choose to have an interest rate of 4% and utilize a Wells Fargo credit of 1.75% of the loan ($7,298) to use toward your closing costs. In this scenario, your first loan monthly payment would be $1,991. If you needed more cash toward closing for the same type of mortgage on the same home, you could opt for a 4.5% interest rate and have a credit of 4.625% of the $417,000 loan ($19,286). In this scenario, your first loan monthly payment would be $2,113. Both scenarios are based on current interest rates and are subject to change.
As you can see, these are some terrific incentives for buyers! These incentives are not going to last forever, so please call me at 949.525.5905 for more info or call Matt Frey with Bankers Funding (a Wells Fargo affiliate) at 949.588.1010.