How to borrow money for your home loan?
Bank of America and Wells Fargo are joining forces to offer consumers a way to pay off their home loans with cash and credit cards, as a way of easing the strain of rising home prices.
As of Thursday, consumers who sign up for a loan through the two banks’ loan-manufacturing arm, Wells Fargo Financial, will be able to pay it off in cash or credit card.
Consumers will have to show they have a qualifying home loan to get the cash and use it on other purchases, like gas, gas pumps and car maintenance, according to a release.
The announcement comes as the market for home loans has soared in recent years, with home prices in many parts of the country reaching record highs.
The two banks announced they will be offering a $10,000 loan, $20,000 and $50,000 financing option, respectively, to consumers who choose to use the new card-payment option.
Consumers who opt for the new option can get a maximum of $25,000 for the first year and $35,000 over four years.
If you’re looking to pay your loan off in person, the two lenders said they will also be accepting credit cards and checking accounts.
If that sounds familiar, that’s because both banks are currently offering credit card and debit card payments to borrowers.
Both banks said they have expanded their existing card-payback options to cover the new cash-payment options.