Have you heard about cash-out refinance? This basically helps you access your home equity by allowing you to replace your current mortgage with a new one. However, this new loan will be higher than the one you already had. The moment you close on your loan, you can be sure that you will get funds that you can utilize it for other purposes such as home improvements, debt consolidation, and so on. To use a cash-out refinance, you must have equity built up in your house. If you are looking for a financial solution as far as cash-out refinance is concerned, you should consider using Wells Fargo.
With over 150 years of experience, you can be sure that you will get the best financial solution for every stage in your life. Here, you can be sure that you will enjoy more convenience, manage your money seamlessly, protect your finances, and finally attain your financial goals. Here are the reasons why you should consider Wells Fargo for this undertaking:
Why You Should Consider Wells Fargo
1. Your financial information remains confidential
Since fraud is rampant out there, you can be sure that your financial information will remain safe. In fact, Wells Fargo offers 24/7 fraud monitoring to all its clients. Here, your accounts will be reviewed in the event of unusual activity. Apart from this, you will not be responsible for any authorized card transactions if you report such issues promptly.
2. Great convenience
With Well Fargo financial services, you can be sure that you will access your money whenever you want. To put it into perspective, there are more than 13000 ATM and approximately 5400 retail bank branches. Besides, this you will enjoy 24/7 toll-free customer care service. Also, you can readily access your account from your mobile phone or even using a laptop.
3. Presence of a number of accounts and services
Well Fargo offers its customers several options when it comes to financial services. You can open checking accounts to meet your individual needs or even saving account where you can save money in a bid to meet long term goals. Finally, it offers free online tools that help you to manage your money.
Reasons Why You Should Consider Wells Fargo Cash-Out Refinance
There are many reasons why you should consider using cash-out finance over other types of loan products in case you need more money. Some of these reasons include:
1. Allows you to get a lower interest rate on your mortgage
With cash-out refinancing, you can be sure that you will be taking a larger loan while at the same time lowering your interest rates. However, this is only applicable if you perhaps you bought your home at a time when the interest rates were high.
For instance, in the year 2000, the mortgage rates was 9%.However, as recent as last year, the average 30-year fixed mortgage rate stood at 3.83%.This way, you will stand out to benefit a lot.
2. It allows you to consolidate your debt.
If you have a debt that has gotten out of control, you can use the money you get from the cash-out refinance to consolidate it. By paying off your credit card bill now will mean that you will pay less money over time. Therefore this kind of financing can help you wedge yourself out of a tight corner financially.
3. Enables you to utilize the cash you get for major expenses
Depending on how much equity you have accrued in your home, chances are that you will walk away with a good amount of money. The good news is that how you utilize the cash solely depends on you.
For some people, they might choose to finance their college education, while others might choose to finance a major remodeling project at home. What matters is that you should know the implication of any financial decision you make after getting the lump sum of cash.
4. Helps to improve your credit score
If you can pay off your debt in good time, you can be sure that you will have a positive impact on your credit score. Here, you will be able to utilize the cash from cash-out refinancing to clear your credit card debt, whose interests might be sky rocketing. This in turn, helps reduce your credit utilization score, which ultimately impacts your credit score. As a result, your credit score will rise in the long run.
5. Tax implications
Mortgage debt is normally tax-deductible. Here, it is possible to write off the interest of your cash-out refinance loan. However, this is only possible if you used the loan to pay for home improvement projects, which in turn boosts the value of your home.
For instance, if you used the loan to upgrade the kitchen countertops of your home or maybe choose to install new flooring in your home, you will enjoy this benefit. However, if you used the loan to consolidate debt or to pay school fees, you will not enjoy this benefit.
Wells Fargo Cash-Out Refinance Application Experience
It is worth noting that Wells Fargo has an online portal where you can apply for your cash-out refinance. In fact, you can even use your Smartphone, and you will be good to go. This process normally takes about 20 to 30 minutes. Here, you can save the application and then rerun it to it later. After that, you can be able to track the application you made online.
In case you encounter some challenges or hiccups, you can get assistance from a loan officer or even choose to apply for a loan in a local branch. Also, you can enjoy using the call center feature where you can get the much-needed advice as far as your loan is concerned.
You will realize that Wells Fargo usually offers FHA and VA cash-out refinances. Also, it offers other mortgage products which might be of help to you. As you apply for this loan, it is essential to note that the processing fee is on all originations.
It is actually not specific to cash-out refinance transactions. The processing fees will vary depending on the state in which you reside. When allocating loans, Wells Fargo usually checks the credit score of the loan-to-value and debt-to-income ratio, among other details.
Who Qualified For Wells Fargo Cash-out Refinance?
For you to qualify for Wells Fargo Cash-out refinance, you should ensure that you meet the credit score threshold and the cap on the proportion of your home’s value you can borrow. Also, your debt-to-income ratio will be checked to access your eligibility for this loan.
FAQ – Frequently Asked Question
Is no closing cost refinance offered at Wells Fargo?
Yes. Wells Fargo will actually allow you to refinance for no closing costs online. All you need is to have no home equity lines of credit. Also, you should owe less than what your property is worth and, finally, avoid changing names on the tile since you closed the first time.
What should be the least credit score for cash-out refinance?
For you to get a cash-out refinance, your least credit score should be 620.You can check this information with your loan officer so that you can know whether you are eligible for the loan or not.
How are the refinance rates from Wells Fargo?
For a 30-year fixed rate, the interest rate here is 3.0000%.A 20-year fixed rate cash-out refinance loan usually attracts interest rate of 2.875%.Finally a 15-year fixed rate loan has an interest rate of 2.625%.
Is an appraisal needed for cash-out refinance?
Yes. Most lenders will require you to get an appraisal before you actually refinance your mortgage. This appraisal usually assures the lender that they are not lending too much money for your property.
How much should a cash-out refinance cost?
You can expect to pay about 3 to 5 % of the new loan amount for closing costs for you to do a cash-out refinance. The closing cost here will include lender origination fees and an appraisal fee to access your home’s current value.
Among many cash out refinance lenders that exist, it is true to say that Wells Fargo offers the best cash-out refinance loans to all its clients. From being transparent to keeping personal information confidential, there are many reasons to consider Well Fargo for this undertaking. Choose Wells Fargo today, and you will be a happy client.