We recently refinanced our mortgage. We changed from a 20-year to a 30-year loan, and reduced the rate by one percent. Along the way we talked to three different mortgage brokers as well as our mortgage holder, Wells Fargo. Wells Fargo was the worst of the lot. They couldn’t even come close to the rates I was getting offered in other places. I found this odd, since they knew better than anyone what a good credit risk we were.
We just got a letter from our new lender. They have sold our loan. Guess who they sold it to? Wells Fargo of course.
I don’t understand the Wells Fargo decision making. They had a good customer in me. They sent me mailings every month urging me to refinance. When I did talk to them, they had horrible terms. But they were willing to buy my loan from someone else. I imagine they had to pay some upfront money to do so. The new loan is on terms much less favorable terms to them, and it’s the exact same customer as they already had.
Something’s crazy here.