Wells Fargo has been extremely competitive on their mortgage rates in the past few weeks.  Wells Fargo offers these competitive rates on a variety of mortgage loans and programs.  Before deciding on a particular home loan, it’s important that you compare mortgage rates, monthly payments and other costs to determine which loan is best for your need.

Wells Fargo offers competitive rates on standard fixed rate home loans in which the mortgage interest rate remains the same from day one on the loan.  The bank also offers adjustable rate mortgages that allow for a lower starting mortgage rate that will change in the future based on a predetermined index.  For example, the 5/1 ARM has a fixed starter rate for five years, but then it resets every year from that time, changing along with the index.  Wells Fargo also offers FHA loans and jumbo mortgages.

Evaluating competing mortgage rates and loans can be perplexing.  One means of comparing loans that can help is the Annual Percentage Rate, or APR.  The mortgage APR represents the total cost of credit, including fees, expressed as an annual rate.  A home loan with an interest rate that is lower than another loan may seem like a better deal, but if it has high fees or closing costs, the APR should show that the second home loan choice may actually be more attractive over the life of the loan.

Here is a sample list of Wells Fargo loan programs and Wells Fargo mortgage rates as of January 29, 2010.

Conforming loans and mortgage rates from Wells Fargo:

30 year fixed rate mortgage is 5.000% with an APR of 5.191%.
15 year fixed rate mortgage is 4.250% with an APR of 4.573%.
5 year ARM rate is 3.875% with an APR of 3.564%.

FHA loans and mortgage rates from Wells Fargo:

30 year fixed FHA mortgage rate is 5.500% with an APR of 6.245%
5 year ARM FHA mortgage rate is 3.875% with an APR of 3.323%

Jumbo loans from Wells Fargo:

30 year fixed rate jumbo loan is at 5.750% with an APR of 5.895%
5 year ARM jumbo loan rate is 5.000% with an APR of 3.930%

The best way to find the optimal mortgage rate and term is to compare rates from multiple mortgage lenders before committing to a new home loan.

All interest rates and terms listed are subject to change without notice.  The accuracy of the information cannot be guaranteed.  Before deciding on which mortgage loan or rate to choose, contact the bank to verify the accuracy of the data.

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