Wells Fargo Home Rebate Card Review

Are the Home Rebate credit card rewards worth pursuing?

Having recently opened up a Wells Fargo bank account, I decided to take a closer look at their credit cards and this one caught my eye. I knew it existed during the real estate bubble, but I wasn’t aware it was still around today.

How it works?

In a nutshell, this card earns a 1% rebate on spending, which is applied towards the principal of your Wells Fargo home mortgage. This happens in multiples of $25 – each time the account accumulates 2,500 points, $25 is applied to the balance of your mortgage.

What’s Wells Fargo spin on it?

Linked to the application page is the Wells Fargo Home Rebate Card savings calculator, which shows your hypothetical savings based on the details of your mortgage and your estimated monthly spending.

wells fargo home rebate card

(Sidenote: The vertical line you see on the left hand side is a glitch on Wells Fargo’s end that is showing up in every browser I check.)

In the above scenario, I used a $200k 30 year mortgage at 6.25%, with an estimated monthly spend of $1,500.

At first glance, the results look impressive – I would be saving $14,996 over the course of my mortgage! Sounds like a great idea, right? Well before you fill out a Wells Fargo Home Rebate card application here is something you need to consider…

You can accomplish the same thing using any 1% cash back card.

If you had a credit card that gave 1% cash back and applied it to your mortgage’s principal following the same example above, you would be saving the exact same amount of money! The only real advantage the Wells Fargo card offers is that the rebate is automatically applied to the mortgage each time 2,500 points is accrued. Aside from that, there’s no real benefit in applying for it.

What’s your best option?

If your goal is to earn credit card rewards so you can pay off your home faster, than your best bet is to utilize higher cash back credit cards and then use the earned rebate to make additional payments towards the prinicipal of your loan.

If the Wells Fargo Home Rebate rewards were higher than 1% then I would advocate getting it, however you can do much better than that. There are a number of cards on the market that give anywhere from 1.25% to 5% cash back – using those would be a smarter choice and save you a lot more money.

Check out these cash back credit card reviews if you would like some suggestions.

Review updated for 2016

The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

I have had the card for over three years. I am now earning 1 1/2% every month because of prior amount we put on our card. It is the only card we use so we can check for fraud. The bonus towards the principal gets put on our mortgage each and every month without me doing your thing. I highly recommend it. I also use the earn more mall. I earned an extra $15 off my mortgage by sending my mom flowers for Mother’s Day this month.

Help me understand this: I have to spend $500 (5%) just to get $25 applied towards my mortgage for the first six months then it jumps up $2500 (1%)? Wouldn’t it be easier to just put an extra $25 dollars a month towards principal through automatic deduction?

Just opened a letter from Wells and I have been bumped to 1.35% for the next year. I was bumped due to spending $50,000 in the year they looked at. It assesses it each year I guess. I am happy with the automatic feature of applying the rebate directly to my mortgage.

If you know what you are doing, this card is absolutely awesome. Think 5% bonus categories.

In my opinion this card is better than a 1% cash back card, in the long run. I highly doubt the majority of people would apply their 1% cash back to their mortgage principal. In fact, most people just have the cash back applied directly to that card’s balance. The WF card automatically applies the cash back directly to your principal for you. When you lower your principal that means more cash in your pocket when you sell your house or refi. The only thing you would have to be concerned about is if Wells Fargo sold your mortgage to another lender.

Mine was apparently just converted to a generic Rewards card for merchandise, anyone else? I am livid.

your going to have a long, long wait before it actually applies to your account. Its NOT automatic as they suggest in their disclosure.

That hasn’t been my experience at all, Robert. My points redeem automatically, and my $25 mortgage principal credit happens a few weeks later. I don’t lift a finger. If you are having a problem, I suggest you contact Wells Fargo and describe the difficulty.

That’s not true, Andy. As long as you’ve already made your full mortgage payment for the month, any additional payments you make that month will go entirely to principal.

Your point is well taken, however, you’ve missed one subtlety–it’s applied to the principal balance directly. If I paid an additional payment of $100 gotten via another card, it would be applied to interest first, then principal. This card hits principal directly.

Thanks. This review was very helpful.

Thanks for explaining it, I’m gonna skip this card.