Wells Fargo Home Mortgage Introduces 10-Year ARM

Press Release



DES MOINES, Iowa, Jan. 26 /PRNewswire/



A new product feature from Wells Fargo Home Mortgage can help homebuyers looking to increase their short-term

cash flow or who intend to move or refinance within a few years.

The company is launching an interest-only feature that doesn't require

principal payment for a period of 10 years. Wells Fargo Home Mortgage's

interest-only product feature was previously available only on 5- and 7-year

adjustable-rate mortgages (ARMs). Interest-only mortgages can be used for

purchase or refinance transactions and allow homebuyers to make payments of

"interest only" during the fixed-rate period of the ARM -- five, seven or

10 years. After the interest-only period has ended, full principal and

interest payments are required as the loan fully amortizes.

Homebuyers/homeowners can make principal reductions during the interest-only

period, but aren't required to do so.

Potential homebuyers who may be suited for the interest-only feature

include:



-- Those who do not intend to be in their homes for more than a few

years.

-- People looking for lower monthly payments and a chance to redirect

their cash flow to high-yield and tax-deferred savings or maximize

retirement contributions.





"We are committed to designing mortgage products and features that meet

the needs of our homebuyers," said Joe Rogers, executive vice president for

pricing, products and programs within Wells Fargo Home Mortgage's National

Consumer Lending Sales area. "The rollout of our interest-only 10-year ARM is

another option we're offering customers to help them meet their overall

financial goals."

Interest-only mortgages are not for homebuyers who are looking to build

equity by paying down their principal or buying in a market where home values

are not appreciating. Interest-only mortgages cannot be used for investment

properties.

"The interest-only feature is a great option for customers who need to

invest funds in other ways," Rogers said. "To some, a home is not their best

or most important asset-building tool. To others, a short-term ability to

lower payments each month works with their long-term cash or asset management

strategies."

Wells Fargo Home Mortgage is the nation's No. 1 retail mortgage lender*,

the No. 1 lender to both low- to moderate-income customers and ethnic

minorities, and one of the country's leading servicers of home mortgages. It

operates the country's largest mortgage network from more than 2,000 mortgage

and Wells Fargo banking stores and the Internet. Based in Des Moines, Iowa,

it serves about 5 million customers in all 50 states through its retail and

wholesale lending operations.



*Based on third quarter 2004 statistics compiled by Inside Mortgage

Finance . Nov. 19, 2004