Wells Fargo Home Equity Prime Rate

How does the prime rate affect your home equity line of credit?

As the prime rate increases, so does your payment

Have questions about why your home equity rate or payment recently increased?

We have answers. Wells Fargo makes loans based on a standard index: The Wall Street Journal prime rate — also known as the prime rate. We then charge a margin on top of that, which is based on your credit history and the terms of the loan.

When the prime rate increases, home equity interest rates that are tied to the prime rate also increase. This results in higher payments if you have a variable rate on a home equity line of credit.

Convert to a Fixed Rate

To avoid these rate changes in the future, you may be able to convert your balance to a fixed rate. This option would allow you to lock an interest rate on your balance.

Contact us for more information:
Home Equity Customer Specialty Services
1-866-735-1618
Mon – Fri: 5 am – 8 pm
Sat: 6 am to 4 pm
Pacific Time

Why is my rate or payment going up?

Your home equity line of credit has a variable interest rate that is calculated by adding a margin (as defined in your home equity line of credit agreement) to the Wall Street Journal prime rate. Your rate and payments will increase or decrease as the prime rate changes.

When will I see the new interest rate on my account?

Please refer to your billing statement. Depending on your account, the interest rate can change daily or with the account billing cycle.

How often can the interest rate change on my account?

The rate can fluctuate based on the terms stated in your contract. For example, the contract may state the rate can change daily, monthly, or quarterly.

How is my interest rate calculated?

For a home equity line of credit, the interest rate is generally variable, meaning it can change based on an index rate (the prime rate) in combination with a margin. The margin is the percentage we add to the index rate to determine your overall interest rate. The margin is based on the credit line, your credit history, and the equity available in the home.

What index is my rate tied to?

We use the Wall Street Journal prime rate as an index for nearly all of our home equity line of credit products. The Wall Street Journal prime rate will move up or down with any rate changes that the Federal Reserve determines.

What is the Wall Street Journal prime rate?

The Wall Street Journal prime rate is a base rate posted by at least 7 of the 10 largest U.S. banks. The Wall Street Journal prime rate will move up or down with any rate changes that the Federal Reserve determines.

When could an interest rate change happen again?

We don’t forecast prime rate increases or decreases. For more information on the Federal Reserve rates, why they increase and decrease rates, and overall policy, you can visit the Federal Reserve website.

Can I convert my variable rate home equity line of credit to a fixed rate?

Please call us to discuss your options to convert your balance to a fixed rate. We have a variety of options that may suit your specific needs.We also have an easy-to-use online calculator that will calculate current rates for you.

Home Equity Customer Specialty Services
1-866-735-1618
Mon – Fri: 5 am – 8 pm
Sat: 6 am to 4 pm
Pacific Time

Does Wells Fargo provide any information to customers who may want to track rate forecasts?

Yes, you can read — and subscribe to — our selection of economic reports. They range from Gross Domestic Product (GDP) growth and interest rate forecasts to U.S. and international economic analysis.