wells fargo home rebate

Is the Wells Fargo Home Rebate Card a Good Deal?

Last week, Wells Fargo boasted about its homeowners collectively receiving $50 million in mortgage principal reduction via the Wells Fargo Home Rebate Card Rewards Program since its launch back in 2007.

While that sounds pretty nifty, is the program just another marketing gimmick, or does it actually deliver?

Let’s dig into the details to find out.

How the Wells Fargo Home Rebate Card Works

  • The Wells Fargo Home Rebate Card aims to pay down your mortgage faster
  • By applying the cash back you earn with the card to the principal balance
  • This reduces how much you need to pay in the way of interest
  • And results in a home loan that is paid off before maturity

First off, the program relies upon Wells Fargo mortgage holders opening a credit card, known as the “Wells Fargo Home Rebate Card.”

Compare the Top 10 Mortgage Refinance Options Near You

Select your state to get started

State

From there, each purchase made using the card earns a 1% rebate, which is credited to the principal balance on your Wells Fargo mortgage in $25 increments.

In other words, once you spend $2,500 with the credit card, you’ll earn a $25 rebate, which will be applied to your outstanding mortgage balance.

For example, if you have a 30-year fixed mortgage with a $200,000 loan amount, and you spend $2,500 per month on the card, Wells Fargo would apply $8,525 toward your principal balance over the life of the loan.

That would save you $7,833 in interest for a total savings of $16,358 (shorter amortization period).

Read about:   Would You Trust Quicken Loans With Your Mortgage?

It would also reduce your loan term from 30 years to 28 years and seven months, meaning you’d own your home free and clear just a little bit sooner.

And all of this would be accomplished automatically, with no fees or work required on your end to take part.

Additionally, Wells Fargo Home Rebate cardholders can earn 3% back on gas, grocery, and drugstore purchases during the first six months.

Note: Several types of mortgages are not eligible, including commercial first mortgages, certain second mortgages, farm loans, piggyback mortgages, and loans in process that are not yet funded.

The Good, Bad, and Ugly

  • While it might sound like a clear winner
  • You only get 1% cash back via this credit card
  • There are plenty of other credit cards that earn 2% cash back or more
  • And you can cash out those rewards to your bank then simply apply them to any mortgage on your own schedule

There are pros and cons to the Wells Fargo Home Rebate Card, like any other special offer out there.

The first negative is that it requires opening a credit card, which is essentially an invitation for more debt alongside your behemoth mortgage.

This is all good and well if you already use a credit card for most purchases, but it could land an irresponsible spender in even more debt.

Secondly, the rebate earned via this program is only 1% – many cash-back credit cards these days come with higher rebate levels, with some offering 5% in certain categories quarterly, or 2-3% year-round.

Read about:   Why you may be denied a mortgage, and what to do if it occurs

In other words, you could technically just take the cash back earned via your other credit cards and apply it to the principal of your Wells Fargo mortgage, or any other mortgage you happen to pay.

Or you could always just make extra payments to principal yourself or make biweekly mortgage payments instead.

Finally, deep in the terms and conditions of the program, Wells Fargo notes that your mortgage won’t be eligible if they sell your mortgage to another company. And worse, they can shelf the program at their discretion, at any time.

Now neither of those things may happen, but it’s still something to keep in mind when debating about going with the card.

On the flip side, the Home Rebate Card is automated, so you won’t have to worry about a lack of discipline in making extra payments to principal.

As long as you use the card enough, the extra principal payments will be made, and your mortgage will cost you less over time.

Is the incentive enough to go with a Wells Fargo mortgage? Probably not, but if all else is equal (e.g. same mortgage rate and fees), it could tip the deal in the bank’s favor.

And if you already have a Wells Fargo mortgage, which many Americans do, it’s something worth considering if you do most of your spending with a credit card.

Pros of the Wells Fargo Home Rebate Card

  • No annual fee
  • No limit to rebate amount
  • Principal paid down faster
  • Mortgage interest reduced
  • Loan term potentially shortened
Read about:   Wells Fargo wrongly hit homebuyers with fees to lock in mortgage rates

Cons of the Wells Fargo Home Rebate Card

  • You need to open a credit card
  • Requires credit card spending to earn rewards
  • You can wind up in even more debt if you spend irresponsibly
  • Your mortgage may be sold by Wells Fargo (loss of eligibility)
  • The program could end at any time

Read more: Chase 1% Mortgage Cash Back program

About the Author: Colin Robertson

Before creating this blog, Colin worked as an account executive for a wholesale mortgage lender in Los Angeles. He has been writing passionately about mortgages for nearly 15 years.

17 thoughts on “Is the Wells Fargo Home Rebate Card a Good Deal?

  1. Crave Freebies says:

    whoah this blog is fantastic i love reading your articles. Keep up the good work! You know, many people are searching around for this information, you could aid them greatly.

  2. Hairstyles says:

    I抦 not that much of a online reader to be honest but your blogs really nice, keep it up! I’ll go ahead and bookmark your site to come back down the road. Many thanks

  3. Hairstyles says:

    I discovered more a new challenge on this fat loss issue. Just one issue is a good nutrition is especially vital any time dieting. An enormous reduction in fast foods, sugary ingredients, fried foods, sugary foods, beef, and white-colored flour products could be necessary. Possessing wastes bloodsuckers, and contaminants may prevent goals for losing weight. While specified drugs briefly solve the issue, the nasty side effects are usually not worth it, plus they never offer you more than a short-term solution. It can be a known undeniable fact that 95 of dietary fads fail. Thank you for sharing your thinking on this blog site.

  4. Hairstyles Vip says:

    Appreciate you for sharing these wonderful threads. In addition, the ideal travel and also medical insurance plan can often reduce those worries that come with visiting abroad. Some sort of medical emergency can shortly become very costly and that’s likely to quickly set a financial impediment on the family’s finances. Setting up in place the great travel insurance offer prior to setting off is definitely worth the time and effort. Thank you

  5. I Fashion Styles says:

    Fantastic beat ! I wish to apprentice while you amend your web site, how could i subscribe for a blog web site? The account helped me a acceptable deal. I had been tiny bit acquainted of this your broadcast provided bright clear concept

  6. I Fashion Styles says:

    We are a group of volunteers and starting a new scheme in our community. Your web site provided us with valuable information to work on. You have done a formidable job and our entire community will be grateful to you.

  7. Hairstyles Vip says:

    Hello! This post could not be written any better! Reading through this post reminds me of my previous room mate! He always kept talking about this. I will forward this article to him. Fairly certain he will have a good read. Many thanks for sharing!

  8. I appreciate, cause I found just what I was looking for. You’ve ended my four day long hunt! God Bless you man. Have a great day. Bye

  9. Hairstyles Vip says:

    I think other web-site proprietors should take this website as an model, very clean and fantastic user genial style and design, let alone the content. You’re an expert in this topic!

  10. I Fashion Styles says:

    Thanks for any other great post. The place else may anyone get that type of info in such a perfect means of writing? I’ve a presentation next week, and I am on the search for such information.

  11. Pretty component of content. I just stumbled upon your web site and in accession capital to assert that I acquire in fact loved account your weblog posts. Anyway I will be subscribing in your feeds or even I success you access constantly quickly.

  12. Fashion Styles says:

    My partner and I absolutely love your blog and find the majority of your post’s to be exactly I’m looking for. Would you offer guest writers to write content in your case? I wouldn’t mind publishing a post or elaborating on most of the subjects you write with regards to here. Again, awesome website!

  13. Have you ever considered about including a little bit more than just your articles? I mean, what you say is important and everything. However just imagine if you added some great images or videos to give your posts more, “pop”! Your content is excellent but with images and videos, this site could certainly be one of the greatest in its field. Fantastic blog!

  14. I Fashion Styles says:

    I really like your blog.. very nice colors & theme. Did you design this website yourself or did you hire someone to do it for you? Plz respond as I’m looking to construct my own blog and would like to know where u got this from. thank you

  15. Beauty Fashion says:

    Wow that was odd. I just wrote an incredibly long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Anyways, just wanted to say wonderful blog!

  16. Crave Freebies says:

    Have you ever considered publishing an ebook or guest authoring on other sites? I have a blog based on the same subjects you discuss and would love to have you share some stories/information. I know my viewers would appreciate your work. If you’re even remotely interested, feel free to shoot me an e-mail.

  17. I Fashion Styles says:

    It抯 actually a cool and useful piece of information. I am satisfied that you shared this helpful info with us. Please keep us informed like this. Thanks for sharing.

Leave a Reply

Your email address will not be published.