many people have large home equity credit lines. their borrowing time has now ended, and now come monthly payments. while the old payments were just interest only and near the prime rate, the new payments will be at today's 2d mortgage interest rates and will be full principal repayment also. the effect is to nearly double the monthly payment required.
the topic here is the new interest rate during the repayment period (up to 30 years). original loan documents do not provide a formula to show how the new rate will be set. they merely say it will be "prime rate" + "wells fargo added margin". well, everyone knows what the prime rate is. the problem is wells fargo is refusing to tell customers how the "margin" part of the new interest rate was reached. the stock answer is that "it's all done by a machine" and "we really don't know how that margin rate was arrived at". yet at the same time, they are seemingly aware that different clients got different margin rates applied, even though the loans went into repayment on the same day.
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as i see it, the original loan should have set a clear formula for the later interest rate. and then when the new rate comes into effect as repayment begins, the client should be able to see the exact numbers that went into calculating his "wells fargo margin rate" that was added to the prime rate. instead, customers are being told that it is a "wells fargo proprietary secret". i do not believe this would stand up in court.
WFC should seriously consider this idea, especially as rates rise. Other credit cards are also charging 3% transfer fees, and even more. How about putting up some competition?
disagree. the borrower has a right to know how the new rate was calculated, and wells fargo is not cooperating.
i will donate to a homeless person !
ok i am NOT as cheap as some people here... i am going to donate ANYWAY!! shame !
have a look at the 2-year chart, this is no bargain.
on the other hand, maybe only the 'tech' people sold out. that means the innocent other stocks were just dragged down, and the market will bounce up fast ...
thanks for reply. in the case i refer to, all the original documents were reviewed and it was not possible to determine how wells fargo would calculate the margin rate, apart from vague language. in other words wells fargo says the added margin rate calculation is a company secret. some factors seem to be a customer's FICO score, and maybe time with the bank. however, it seems very clear different people got different margin rates, even if their loans went into 'repayment' on the same day. that last part is the concern, and wells fargo will not show the "black box" calculations made by the machine.
the market acted as if they would (raising oil prices), but officials now say that is not going to happen.
exactly. on the other side of the coin, how do people perform after things have NOT been going well? answer: usually not good. they try to 'compensate'; to 'do something. but sadly, those are not possible.
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