Mortgage Madness at Wells Fargo and Bank of America

http://www.cnbc.com/2016/05/26/wells-fargo-launches-3-down-payment-mortgage.html

http://www.dsnews.com/news/03-22-2016/is-bank-of-americas-new-mortgage-program-a-substitute-for-fha-lending

By William Hudson

Wells Fargo and Bank of America have announced that they will be offering 3% down loans that are proven to be as high risk as no-money-down mortgages. These loans will be offered to people with poor credit. If 3% is too much to put down, the banks are offering insane “incentives” to entice borrowers to reignite a stalling real estate market.

Wells Fargo claims that borrowers can qualify for an even lower interest rate if they agree to go to a ridiculous and ineffective “government-sponsored” class on finance (think “Mortgages for Dummies”). Wells Fargo offers a 3.75% interest rate if you put the 3% down or 40% down on the loan- it hardly matters to them since they are selling the paper. Attending the finance class reduces your rate by a mere .08% of the interest…