There are many reasons why you might need some extra room in your budget. That’s why getting a lower interest rate or extending the term of your loan may help lower your monthly payments. Be sure to keep an eye on the total fees and costs of borrowing because extending the term or refinancing your loan could increase monthly interest payments and the overall expense you pay over time.
Customer Discount
As a valued Wells Fargo customer, you may qualify for an interest rate discount on an eligible Wells Fargo loan. Contact a banker to see if you qualify.
Strategies that may help reduce monthly payments
Lower your rate.
You may be able to lower the rate of your current loans or your credit cards, especially if your credit score has improved or if overall interest rates have gone down since you initially applied for the loan. Make sure to consider any fees that might be associated with refinancing.
Consolidate your debt.
You may be able to lower your monthly payments if you consolidate multiple loans or credit cards into one new loan with a lower rate or longer term. And because there are different ways to consolidate for different needs, Wells Fargo will work with you to find the right option. We encourage you to carefully consider whether consolidating your existing debt is the right choice for you. Consolidating multiple debts means you'll have a monthly single payment, but it may not reduce or pay your debt off sooner.
Extend the length of your loan.
Another way to potentially pay less each month is to qualify for refinancing that extends your loan repayment period or term length. Just be aware that your repayment period will increase, which can increase the overall amount that you repay and your total cost of borrowing.
Compare debt pay down strategies.
If you are working to pay down your existing debt, there are a couple of different strategies you can take, each with its own pros and cons. See which may work best for you by reviewing the Snowball versus Avalanche methods of paying down debt.
Next Step:
Understand the total cost of borrowing
When considering a new loan or restructuring your current debts, remember to consider your borrowing costs. Extending the term of your loan may lower your monthly payment, but you may pay more in interest over the life of the loan, increasing your total payments.
Products to consider
To qualify for a customer relationship discount, you must have a qualifying Wells Fargo consumer checking account and make automatic payments from a Wells Fargo deposit account. To learn which accounts qualify for the discount, please consult with a Wells Fargo banker or consult our FAQs. If automatic payments are canceled, for any reason at any time, after account opening, the interest rate and the corresponding monthly payment may increase. Only one relationship discount may be applied per application.
Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you. Consolidating multiple debts means you will have a single payment monthly, but it may not reduce or pay your debt off sooner. The payment reduction may come from a lower interest rate, a longer loan term, or a combination of both. By extending the loan term, you may pay more in interest over the life of the loan. By understanding how consolidating your debt benefits you, you will be in a better position to decide if it is the right option for you.
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