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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Tiny houses under fire by builders ... Local veteran's persistence pays off for all vets ... Second SOU candidate embraces liberal arts ... Tiny houses under fire by builders ... Local veteran's persistence pays off for all vets ... Second SOU candidate embraces liberal arts ... Wells Fargo offers home loans with 3 percent down Buyers would have fewer out-of-pocket costs with the new 'yourFirst Mortgage' program Comment By Greg Stiles Mail Tribune Follow @@GregMTBusiness MailTribune.com By Greg Stiles Mail Tribune Follow @@GregMTBusiness Posted May. 26, 2016 at 3:48 PM By Greg Stiles Mail Tribune Follow @@GregMTBusiness Posted May. 26, 2016 at 3:48 PM » Social News In a move to spur home ownership for moderate-income families, Wells Fargo said Thursday it will offer fixed-rate, 30-year mortgages to buyers with a down payment of as little as 3 percent. The program, known as yourFirst Mortgage, is available to present homeowners and others meeting modest credit score and other requirements. Buyers will have fewer out-of-pocket costs and be asked to attend a home-buying class. Kurt Hill, Oregon's area sales manager for Wells Fargo Home Mortgage, said qualified home buyers with FICO scores of 620 or better may use alternative types of credit sources, including rent history and utility payments to establish eligibility. "Since the changes in mortgage lending back in 2007-08, first-time buyers have had limited options available to them for affordable housing. This removes the complexities and helps people achieve ownership by lowering down payments." Hill said buyers can reduce their interest rates by an eighth of a point by completing home-buyer courses offered by local nonprofit agencies or online at a cost of $75. Jackson County's median sales price for an existing single-family residence last month was $232,500, according to Southern Oregon Multiple Listing Service. A $200,000 house would require a $6,000 down payment, plus closing costs of about $3,500 to cover appraisal, title recording, settlement and other fees. Mortgage interest rates have been about 4 percent and still vary based on credit worthiness. Down payments of less than 20 percent require mortgage insurance, Hill said. If a buyer is paying the mortgage insurance, the monthly payment on the $200,000 house would be roughly $1,065, and the annual percentage rate would be 4.427 percent. If the lender includes the mortgage insurance in the cost, the monthly payment would be about $1,000 at 4.664 percent. The catch in having the lender fold the mortgage insurance into the payment is that when the buyer gains 20 percent equity, the insurance is no longer required and the monthly payment goes down. That doesn't happen with the lender-payed mortgage insurance. "Obviously, a larger down payment can get you lower rates," Hill said. Reach reporter Greg Stiles at 541-776-4463 or [email protected]. Follow him on Twitter at www.twitter.com/GregMTBusiness , and read his blog at www.mailtribune.com/Economic Edge. By Greg Stiles Mail Tribune Follow @@GregMTBusiness MailTribune.com By Greg Stiles Mail Tribune Follow @@GregMTBusiness Posted May. 26, 2016 at 3:48 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... Business Name address Location, ST | website.com Find Southern Oregon Attractions Bars Restaurants Beauty Salons Entertainment Doctors Medical Specialists Contractors Education Lawn Services Lawyers Shopping Travel Tanning Used Cars Wedding Services ▼ Add your business here + Events Calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2016 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501