Refinancing Your Wells Fargo Mortgage: Is Now A Good Time?

If you have a Wells Fargo mortgage you can refinance or modify your mortgage loan under the Home Affordable Modification Program, which is part of the sweeping legislation that was crafted by U.S. President Barack Obama under the 2009 Economic Recovery Act. Wells Fargo mortgages that are serviced by Fannie Mae or Freddie Mac qualify for refinancing under the plan, and many mortgages also qualify for loan modification. That makes right now a good time to refinance your Wells Fargo mortgage, especially if you are paying more interest than you can afford, or fear that you might become unable to make payments on a variable rate mortgage that has recently adjusted to a new rate.Refinancing Your Wells Fargo Mortgage NowIf you have a Wells Fargo mortgage that qualifies for refinancing, you must meet certain guidelines in order to refinance. First of all, you must be refinancing your existing mortgage on your primary residence in which you live. You must have sufficient income to make the payments on your mortgage, which will be determined by figuring your income to debt ratio, which looks at your incoming household income and your outgoing bills. You must not owe more than 105% of your home value on your mortgage loan, which is determined based on area home values. Your new mortgage will be financed for either fifteen or thirty years at a fixed rate. The average rates that are received by those who are refinancing are as low as 2% but average around 5%.Modification Of Your Wells Fargo Mortgage LoanSome homeowners do not qualify for refinancing of their home because they owe more than 105% of the value of the home, and this is usually caused by deflating property values around the country, and is particularly true of mortgages that have been written in the past 5-7 years. If you meet the qualification for loan modification, your Wells Fargo mortgage loan can be modified to more amenable terms that will allow you to make a smaller monthly payment, pay for a longer period of time, and obtain a lower interest rate that will make your home loan more affordable.Only mortgages that were written prior to January 2009 will qualify for assistance, and you must be modifying the mortgage on a home that you live in and consider to be your primary residence. You must owe less than $729,750 on your home, and be willing to provide the lender with documentation of your income. Another important part of loan modification under the 2009 Economic Recovery Act is that you submit an affidavit of hardship that gives the lender and the government an idea of why you fell into financial straits and are unable to pay your mortgage payments. Be prepared to provide income tax returns and paystubs, as well as your previous two months banking statements for checking and savings accounts.Now Is Best Time For Refinancing Or Modification Of Your Wells Fargo MortgageAlthough rates for refinancing are expected to stay low for the next year or so, with the economy in such an uncertain state, now is the best time for you to consider refinancing or modification of your existing Wells Fargo mortgage. Lock in a good rate and also receive assistance with closing costs (from the government) by refinancing your home mortgage loan now.