The purchase of a home is a very important decision that should be meditated calmly, both for the choice of the house we want to buy, as well as for the financing we want to hire to be able to pay for it.
With Wells Fargo we can access various mortgage loans with which it is possible to acquire a property with very competitive interest rates that can be fixed, paying the same throughout the repayment period, or variable, recalculated every 12 months to adapt to the corresponding reference index, in this case the SOFR (Secured Overnight Financing Rate), to which a margin or differential is added.
In the case of adjustable-rate mortgages, you will have a first period with a fixed interest rate, lower than with fixed-rate mortgages, which can last 5 years (5/1 ARM), 7 years (7/1 ARM) or 10 years (10/1 ARM).
With fixed-rate mortgages you are assured that the monthly payments are always the same amount and will never go up, but they will never go down either. They may be recommended for loans with a long repayment term.
Adjustable loans allow you to pay less at the beginning, with the first period having a lower fixed rate. Then the rate fluctuates and you may pay more, but also less.
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They are a good product when we expect to be able to amortize early or when we plan to move to another place to live in less than 10 years.
Although in the past Wells Fargo also offered Home Equity Lines of Credit (HELOC), which allow you to have money to use for whatever you want, they are not currently available, as they have been temporarily deactivated, until market conditions change.
For more information and simulations, please visit the Wells Fargo website. For the procedures, however, you will have to go to a bank office near you.
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