Refinancing Your Home Tips: Mortgage Rates Chase vs. Mortgage Rates Wells Fargo?

/ 01:54 AM February 14, 2019

Mortgage Rates Wells Fargo

Mortgage Rates Wells Fargo

As the economy seems to be getting better, home owners are thinking of refinancing their homes. That being said, they are at a loss when trying to figure where the best mortgage rates are going to come from. Mortgage rates at Wells Fargo and mortgage rates at Chase are two of the biggest banking options, and homeowners are comparing which bank has the most economical mortgage rates. As of now, the housing market remains quite stable. This article will provide tips for refinancing your home and getting the best mortgage rates that you can.

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How Mortgage Refinancing Works

A mortgage is a loan from a bank or company that you can use to purchase a piece of real estate.  The property you purchase becomes collateral against the loan. A mortgage refinance exchanges the current mortgage for a new one, adjusting different aspects of the loan such as interest rate. The loan company pays off the old loan, and the the borrower starts making payments on the new loan. Let’s say you go to Wells Fargo to check the mortgage rates that they have there.  If you wanted to refinance through Wells Fargo, they would take the loan you currently have, agree to fulfill its terms, then establish a new loan for you through their bank. You become liable for the changes in the loan terms and potential alterations in your mortgage rate. Before you go to Wells Fargo, you want to find out what their mortgage rates are. Let’s take a look.

Mortgage Rates Wells Fargo

Wells Fargo’s mortgage rates as of now are as follows: For a 15 year fixed mortgage refinance that is offered by Wells Fargo, the loan amount is $200,000, the term being 15 years, and the interest rate at 3.875%. If you wanted a 30 year loan, the interest rate is 4.75%. When you get the rates, you want to compare them to another bank or lender. We will review Chase bank’s mortgages and compare the different options.

Mortgage Rates Chase

Mortgage Rates Chase

We have taken a look at Wells Fargo’s mortgage rates and are now comparing them to Chase’s mortgage rates. Chase bank also offers refinancing options, too. For a 15 year refinance loan the interest rate is 4%. On the 30 year refinance loan, the interest is 4.75%.  When we have analyzed both bank’s mortgage rates, we decide to go with the better option. However, there is more to refinancing than just comparing interest rates and banks. We have additional tips for those who want to refinance their homes for whatever purpose.

Credit Score

The mortgage rates are adjusted these days based on certain factors. The top factor is your FICO credit score. Your score helps lenders find out if you qualify for the loan and what rate you’ll pay on that loan. If you have a high credit score, you’ll pay less for your mortgage rate. The best rates are for those with a credit score of 760 or above. If you have a credit score of 620, then your rate will be 5.022%. If your credit score is 760 or above, 3.433% is your rate. If you have a credit score of 500, you could qualify for a loan with 3.5%  down, and your rate would be 10%.

Employment & Income Stability

If you’re trying to refinance your home, the lenders are looking for how steady your employment has been in the past two years. They want to see that your income has steadily increased or at least stayed the same. Self-employed borrowers should be able to show income for the past two years and income tax records as well.

Debt-to-Income  

Debt-to-Income ratio is important as well. This measures your monthly bills with minimum debt payments, your new house payment, then divide it by how much your gross income per month is. Then there is the front end ratio, which is all of your housing costs. The ratios are what the banks look at to see if you qualify for a specific mortgage rate.

Find the Best Mortgage Rates

After you have taken care of the main pieces to your refinancing or home buying journey, the next step is to compare the best mortgage rates. With information online right at your fingertips, the options for comparing the various mortgage rates are easier than ever. Always check with your bank or credit union as the primary source of related information. They often have rates for their preferred customers that could be lower than what the public can qualify for. If you are a member of a credit union, you’ll have a greater chance to be approved for the lowest rates. Some places offer a discounted rate if you use your checking account to pay off your mortgage. The main point is to have all of your papers organized, your finances straight, credit score raised, and you should then be able to get the refinancing rates that you’re looking for.

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