Wells Fargo Home Mortgage said today it would join the growing club of lenders offering home buyers the option of a 40-year, fixed-rate mortgage. Wells Fargo is pitching the loan as a tool to bring down monthly payments in areas where home prices have soared, without resorting to an interest-only or option adjustable-rate mortgage, which it says are riskier. "A 40-year mortgage may be appealing to first-time home buyers, consumers in high-cost markets, real estate investors and buyers on fixed incomes," said Joe Rogers, executive vice president in Wells Fargo Home Mortgage's National Consumer Lending Sales division, in a press release. Wells Fargo says interest rates on a 40-year mortgage are expected to be about a quarter-point higher than rates on a traditional 30-year loan. Stretchin...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.