Consumer complaint received 2023-05-22
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: WELLS FARGO & COMPANY (MD)

My initial home equity loan with Wells Fargo XXXX loan # XXXX ) started in XX/XX/XXXX for {$110000.00}. The monthly payment was {$900.00}. The loan was for 15 years with a balloon payment of {$91000.00} due in XX/XX/XXXX. At least 70 % of the monthly payments were for interest which meant the loan was not being paid down by applying more to the principal. Therefore, only {$24000.00} would actually be applied toward the loan by the time the balloon payment was due. How is this type of loan beneficial to homeowners who are trying to pay their homes ' off? In XXXX, I called XXXX XXXX to try to obtain a new loan that would result in me paying my home equity loan off and not have a balloon payment. I talked to people in the Home Equity Solutions, Home Equity, Loan Modifications, Premier Banker, Home Preservation, and Subordination Departments. I also talked to XXXX, XXXX, ext XXXX, ( do not recall what department she worked in ). No one in Wells Fargo offered a solution, they just stated that in XXXX, I would be able to do a loan modification for the initial home equity loan. This solution benefited Wells Fargo financially because they made {$91000.00} and issued a new loan for {$93000.00} to make money. In XXXX, I received a Account Overview that stated that the home equity loan would be modified in XX/XX/XXXX with an outstanding balance of {$100000.00}. The document mentioned that they are here for me and happy to have me as a customer. It also stated that Wells Fargo appreciated the opportunity to help me to continue to enjoy the advantages and benefits of my home equity financing. How could I be happy paying for a loan for 15 years and still owing {$91000.00}? This institution is not interested in assisting homeowners so they can pay off a home equity loan in positive financial way. It is about the money for them. It is obvious that there is an issue at Wells Fargo after the government fined them $ XXXX. Yes, Wells Fargo did a loan modification for me in XXXX but the loan amount was {$93000.00} with a monthly payment of {$500.00} ( new loan # XXXX ). This loan will mature in 20 years in XX/XX/XXXX. Based on the initial home equity loan and the new loan modification, I will have paid the loan almost twice. I will be paying on this loan for 35 years ( 15 years for the first loan and 20 years for the new loan ), which is more than a regular 30 year mortgage. If Wells Fargo would have assisted me years ago ( before the loan modification was done ), I could have paid this loan off years ago. This financial institution did not try or want to assist me before the balloon payment was due. Also, Wells Fargo will state that there is no documentation showing that I applied for a new loan, refinance, etc., and this is true because I was told on every occasion that there was no option for me to apply for a new loan, refinance, etc. This situation is disappointing and shows how much money I paid that could have been avoided if Wells Fargo would have worked with me for a positive solution to pay this loan off before the balloon payment happened in XXXX.