Wells Fargo has raised the interest rate on big-ticket mortgages, and other lenders are following suit.
The company, one of the nation’s biggest mortgage lenders, raised its interest rate on 30-year, fixed-rate, non-conforming loans from 6.875 percent to 8 percent. The jump means the monthly bill for a $600,000 mortgage would hit $4,403, compared to $3,942 previously, an increase of $461.
Non-conforming loans, also known as jumbos, are loans of more than $417,000, the limit observed by Freddie Mac and Fannie Mae. Neither of the government-sponsored enterprises buys loans above that cap.