Many say your home is the wisest investment you'll make. Historically, it's an asset you can count on during difficult times, and it's something you can pass on to your family.
Your home is a financial tool; you build equity as you pay your loan and as the value increases in favorable market conditions. Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year. Home values nearly double every 10 years, according to historical data from the National Association of Realtors.1
Unlock Your Home's Equity With Wells Fargo Financial
Refinancing your home loan can help you free up your budget by taking advantage of the equity you've built. For many homeowners, it's a great way to restructure high-interest bills and thereby reduce your current monthly payments.
You could free up extra money each month to spend however you’d like. Or, you may choose to get cash back to pay for your immediate financing needs. With home loans and home equity lines of credit, the interest you pay may be tax deductible.2
What Is A Mortgage Loan?
A mortgage is a document that gives a lender an interest in real property. It provides the lender assurances that you’ll honor your promise to repay the money you’ve borrowed. Your promise to repay is found in the written instrument known as the note. Together, a mortgage and note are often simply referred to as a mortgage loan.
Mortgage loans come in many different shapes and sizes, all with their own advantages and disadvantages. It is important to learn about all the mortgage loan options available, so you can select the one that’s right for you, your financial situation and your personal goals.
Wells Fargo Financial offers two types of mortgage loans you can choose from when you’re ready to refinance.
Fixed-Rate Mortgage Loans
Fixed-rate mortgages offer predictable monthly payments throughout the life of the loan and give protection from rising interest rates. They work well for those with a fixed or slowly-increasing income and have a lower tolerance for financial risk. Fixed-rate mortgages are generally well-suited for borrowers who plan to stay in their home for a longer period of time. Fixed-rate mortgages are often considered more conservative and can give you the security of knowing your monthly principal and interest payment will not change over the life of your loan.
Adjustable-Rate Mortgage (ARM) Loans
ARMs have adjustable interest rate and payments; however, they remain the same for the first three years. The interest rate and payments could adjust every six months thereafter based on market conditions. ARMs may be more appropriate for borrowers who may want to sell or refinance early, can make larger monthly payments after the rate adjusts or are looking to buy a home when interest rates are relatively high.
Your home is a financial tool; you build equity as you pay your loan and as the value increases in favorable market conditions. Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year. Home values nearly double every 10 years, according to historical data from the National Association of Realtors.1
Unlock Your Home's Equity With Wells Fargo Financial
Refinancing your home loan can help you free up your budget by taking advantage of the equity you've built. For many homeowners, it's a great way to restructure high-interest bills and thereby reduce your current monthly payments.
You could free up extra money each month to spend however you’d like. Or, you may choose to get cash back to pay for your immediate financing needs. With home loans and home equity lines of credit, the interest you pay may be tax deductible.2
What Is A Mortgage Loan?
A mortgage is a document that gives a lender an interest in real property. It provides the lender assurances that you’ll honor your promise to repay the money you’ve borrowed. Your promise to repay is found in the written instrument known as the note. Together, a mortgage and note are often simply referred to as a mortgage loan.
Mortgage loans come in many different shapes and sizes, all with their own advantages and disadvantages. It is important to learn about all the mortgage loan options available, so you can select the one that’s right for you, your financial situation and your personal goals.
Wells Fargo Financial offers two types of mortgage loans you can choose from when you’re ready to refinance.
Fixed-Rate Mortgage Loans
Fixed-rate mortgages offer predictable monthly payments throughout the life of the loan and give protection from rising interest rates. They work well for those with a fixed or slowly-increasing income and have a lower tolerance for financial risk. Fixed-rate mortgages are generally well-suited for borrowers who plan to stay in their home for a longer period of time. Fixed-rate mortgages are often considered more conservative and can give you the security of knowing your monthly principal and interest payment will not change over the life of your loan.
Adjustable-Rate Mortgage (ARM) Loans
ARMs have adjustable interest rate and payments; however, they remain the same for the first three years. The interest rate and payments could adjust every six months thereafter based on market conditions. ARMs may be more appropriate for borrowers who may want to sell or refinance early, can make larger monthly payments after the rate adjusts or are looking to buy a home when interest rates are relatively high.
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