Generally speaking, closing costs can range from 2% to 5% of the loan amount. Some lenders with no origination fee make up for it by charging borrowers a higher interest rate, so you’ll want to compare the annual percentage rate (APR) of each loan, not just interest rates, when you’re shopping around.
Here’s a look at what closing costs Wells Fargo charges:
Lender Fees
Wells Fargo’s lender fees vary by loan product and location and can be anywhere from a few thousand dollars for an ARM to more than $10,000 for a jumbo loan. These estimated fees include an origination fee and discount points that allow you to pay a percentage of the loan amount to “buy down” your interest rate.
You’ll be able to evaluate the fees for your specific loan on your loan estimate after you apply and before you commit. Often, you can reduce your fees by certain shopping around for mortgage services.
Rate-Lock Fees
You have the option to lock your rate online or by phone. A Wells Fargo loan officer can help guide your decision. If you’re buying an existing home, Wells Fargo will lock your rate for up to 120 days. Wells Fargo does not publicly disclose the amount it charges for a rate lock.
“The length of a rate-lock period may impact the cost of the loan, and some may require a fee up front,” says Tom Goyda, senior vice president of consumer lending communications at Wells Fargo.
For new construction, rate locks can be as long as 720 days, giving you plenty of time to build your home. The company also offers an extended rate lock program that allows you to lock in your rate for up to 24 months on a variety of loans with a required, non-refundable extended lock fee and an option for a one-time float down.
Wells Fargo says it will also extend your rate lock at no cost to you if your rate lock is set to expire before your loan closes.
Check out the Forbes Advisor home affordability calculator if you want to know exactly how much house you can afford.
Prepayment Penalties
Wells Fargo doesn’t charge prepayment penalties on any of its current home lending products, according to a company spokesperson.
