Thursday, May 30, 2013

Some Home Owners Chip Away at Mortgage With Credit Card

Wells Fargo’s credit card, the Home Rebate card, has allowed its customers to pay down $50 million in mortgage balances since the card’s debut in 2007.

Every purchase a customer makes with the card counts toward a rebate credited to the principal of the borrower’s Wells Fargo mortgage.

Over a 30-year time period, the card has the potential to help chip away at a home owner’s mortgage balance by reducing the mortgage interest they owe by potentially “thousands of dollars” as well as lowering the number of payments required, Wells Fargo officials say.

As a recent HousingWire article reports: “Wells Fargo claims a cardholder with a $150,000 mortgage who spends $1,500 a month on the Home Rebate Card could shorten their payment schedule by more than a year.”

Source: “Credit Card Allows Borrowers to Simultaneously Pay off a Mortgage, Daily Bills,” HousingWire (May 29, 2013)

No comments: