MORTGAGE UPDATE:

Lending update courtesy of MS&C Mortgage,
an affiliate of Wells Fargo

Market in Review: The Wells Fargo View

Opportunities Are Available For Qualified Consumers

The spring buying season is right around the corner and this is a "buyer's market." Qualified consumers may have advantages when shopping for a home:

    • Large selection of homes "priced to sell"
    • Large inventory of new homes
    • Sellers likely more willing to make concessions
    • Relatively low interest rates

February data from the National Association of Home Builders/Wells Fargo Housing Opportunity Index shows that nationwide, housing purchase opportunities increased for the fourth quarter 2007 and on a year-over-year basis, rising to the highest level since the first quarter of 2005.

The Wells Fargo View: Customers and clients are our number one priority. We offer closing guarantees where available, pre-approvals and extensive products to help people realize their goals of homeownership. We have a vast network of mortgage and bank branches, a sales force that spans the country, a robust Internet presence, and call centers that offer superior service.

Building And Using Your Home’s Equity

Much has been written lately about the value of homes and the equity consumers acquire in their homes over time. When purchasing a home, various loan terms are available to qualified consumers and can affect how quickly equity is built. While shorter loan terms may have higher payments, more of each payment is applied to the principle balance. For example, a 15-year loan would be paid off in 15 years while a 30-year loan would still have $196,435 left in principle, plus the remaining interest (see chart on this page.) The shorter-term loan enables customers to potentially access more equity sooner. In addition, when purchasing a home, consumers have financing options. Two options include home equity financing and Lender Paid Mortgage Insurance (LPMI). The lower prime rate has had a positive effect on home equity lines of credit, making interest rates and payments lower than they’ve been since 2005. Home equity financing benefits include:

• Lower interest rates than most credit cards
• Potentially tax deductible interest*
• Reduced monthly payments

*Consult your tax advisor regarding deductibility of interest.

The Wells Fargo View: With one application, one lender and one closing, Wells Fargo first mortgage customers and clients could potentially benefit from a home equity loan or line of credit. Using home equity financing can help reduce down payment needs. Wells Fargo is a strong, sound mortgage lender and servicer. Our business is uniquely positioned to succeed in today’s challenging market. Here is our insight on current conditions, and how we will continue to responsibly make loans to customers across the credit spectrum.

Pay Your Taxes AND Brush Up On Financial Literacy In April

Springing forward also means the April 15 tax deadline is quickly approaching. Consumers preparing their 2007 taxes should be aware of recent changes related to mortgages:

• The Mortgage Insurance deduction may help some consumers who purchased mortgage insurance in 2007. Eligibility is based on adjusted gross income, so check with your tax advisor for details.

• The Mortgage Forgiveness Debt Relief Act of 2007 will help homeowners with mortgage debt that was partly or completely forgiven by their lender. Under the previous law, if the value of your house declined and your lender forgave a portion of your mortgage, the amount forgiven was treated as income that could have been taxed.

April is Financial Literacy Month. According to the Jump$tart® Coalition, nearly 60% of high school seniors graduate without knowing the basics of money management. To increase financial awareness, April 29 is designated "National Teach Your Child To Save Day,: sponsored by the American Bankers Association. This day is set aside to promote wise money management. Financial education opportunities are available online or possibly in your community.

The Wells Fargo View: Wells Fargo is a leader in educating consumers about money management, and we provide free, easy-to-use tools and advice. We also offer programs – both at Wells Fargo and through local organizations and credit counselors – that help our customers and clients better understand credit management, credit reports and the importance of maintaining good credit. Check out our Hands on Banking®/El futuro en tus manos® program at http://hob.hoestead.wellsfargo.com or speak to a Wells Fargo representative to see if you qualify for Steps To SuccessSM.

Increased FHA, Fannie Mae And Freddie Mac Loan Limits Offer Additional Financing Options

The loan limits available through the Federal Housing Administration (FHA), Fannie Mae and Freddie Mac have increased as part of the Economic Stimulus Package. FHA offers government-backed products ranging from mid- and long-term fixed-rate mortgages, and various ARM products that allow consumers to choose the loan that best fits their financial needs. Changes are as follows:

• All counties now have access to an FHA loan as high as $271,050 (formerly $200,160)
• In certain high cost areas, consumers can get FHA loans up to $729,750. The areas are defined on the U.S. Department of Housing and Urban Development Web site: https://entp.hud.gov/idapp/html/hicostlook.cfm

Fannie Mae and Freddie Mac also have temporarily increased their loan limits from $417,000 to be as high as $729,750 in certain Metropolitan Statistical Areas (MSAs). This temporary increase applies to loans originated through Dec. 31, 2008.

The Wells Fargo View: Wells Fargo Home Mortgage(WFHM) is a leading FHA/VA lender, making loans available to consumers with flexible terms. The FHA floor limit increases became available through WFHM on March 7 and higher loan limits on March 17. Many customers and clients may benefit from these changes in both purchasing new homes and refinancing existing homes.

Wells Fargo & Company is a diversified financial services company with $575 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from almost 6,000 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the U.S., and one of two banks worldwide, to have the highest possible credit rating from both Moody's Investors Service, "AAA," and Standard & Poor's Ratings Services, "AAA." Information is accurate as of date of printing and subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2008 Wells Fargo Bank, N.A. All rights reserved.