Wells Fargo Mortgage Rates Bring in Business

Bank uses TARP right

Wells Fargo Mortgage rates are at historic lows. The bank’s 4.89 percent interest rate sent it to the No. 1 spot on the list of new mortgages. Furthermore, Wells Fargo took bailout money from the Troubled Asset Relief Program and used it for its intended purpose: to give people personal loans for homes.

Bailout done right

Wells Fargo got $25 billion in October when it sold shares to the government through TARP, and it gave out $24 billion in mortgage loans in January. While AIG is using taxpayer money to give executives “retention bonuses,” Wells Fargo is using mortgage rates and bailout money to put people in homes.

Second place

Bank of America gave out $22.9 billion in new home loans in January. That’s 48 percent more than it lent in December. Most large banks are lending at the current mortgage rates, averaging less than 5 percent.

Third place

JP Morgan Chase, which also received bailout money from the TARP fund, gave borrowers $9.6 billion in mortgages for new homes.

High demand for refinancing

Banks are also using the lower interest rates to help people struggling with payments or in danger of foreclosure. Loan modification and refinancing account for much of the 21 percent jump in mortgage applications.

“Wells Fargo is experiencing a significant increase in contact from customers who want a responsible lender to help them with a refinance or home purchase. This is a great time for customers to achieve homeownership in a way that is sustainable for the long-term,” said Greg Gwizdz, executive vice president, national sales manager, Wells Fargo Home Mortgage.

Personal Money Store can help you with loan modification, too. Check it out: 5 Things You Should Know About Foreclosure Prevention.

Lending on track

Wells Fargo mortgage rates aren’t the only thing driving borrowers to take out loans. Auto, student, and other personal loans increased by huge amounts. The bank gave out $2.4 billion worth of student loans in January.