Additional Funds Needed:

This amount represents the funds in excess of your current mortgage and home equity balances that you would like to access from the available equity in your home.

Annual Homeowners Insurance:

Homeowners or hazard insurance is a real estate insurance policy that provides protection against loss caused by fire, vandalism, some natural disasters, personal injury, and theft. In this field, enter the amount of the estimated yearly homeowners insurance premium paid on the property. If purchasing, you can contact an insurer to get an estimate of what the annual homeowners insurance premium might be.

Annual Real Estate Taxes:

Also known as property taxes, real estate taxes are typically paid to a municipal or county taxing authority for a specific property. In this field, enter the amount of the estimated yearly real estate taxes paid on the property. If you’re refinancing, use the amount your taxing authority or mortgage company provides to you at the end of each year. If you’re buying a home, you can usually find an estimate of the annual real estate taxes on the property listing information.

APR:

The annual percentage rate (APR) expresses a loan's total finance charge over the lifetime of the loan. The APR includes the interest rate, fees, discount points, and mortgage insurance, and is therefore a more complete measure of a loan's cost than the interest rate alone. When shopping for a mortgage, you can use the APR to compare total costs of similar types of mortgages between lenders.

Closing Costs:

Money paid by, or on behalf of, a customer in connection with the closing of a mortgage loan or home equity financing. This generally involves an origination charge, discount points, fees for required third party services, taxes, prepaid expenses, escrow deposits, mortgage taxes, attorney fees and government recording fees.

Discount Points:

One discount point is equal to 1% of the loan amount. Discount point(s) may be paid to the lender to permanently reduce the loan's interest rate, and may be paid by the borrower or seller. Be aware, however, that one discount point will typically reduce the interest rate by less than 1%. Discount points may also be received by the customer (shown as a negative number in the discount points column). The interest rate is typically higher on these loans but your closing costs are reduced by the Money amount of the negative points, resulting in lower closing costs.

Down Payment:

On a purchase loan, this amount usually represents a percentage of the purchase price that you are required to pay in cash (certified check), and cannot finance into the loan amount. The percentage that you are required to pay usually varies based on the loan product you selected. Government loans usually require lower down payments than conventional (non-government) loans. On a conventional loan, typically if your down payment is less than 20% you are also required to pay mortgage insurance.

Estimated Value of Home:

Enter a conservative estimate of the current value of the property. You can find many tools online to help you instantly estimate the current value. To help you get an idea of neighborhood values, you can track recent home sale prices through our free email newsletter, the Wells Fargo Home Sales MonitorSM. https://www.wellsfargo.com/mortgage/subscribe

First Adjusted Interest Rate:

The first adjusted interest rate is an estimate of the interest rate that may be charged on an adjustable rate loan when it first adjusts at the end of the fixed-rate period. Since future rates cannot be predicted, it is calculated by adding the current index rate to the margin (subject to the first adjustment cap).

First Adjusted Payment:

On adjustable rate mortgages (ARMs), after your initial fixed-rate period expires, your interest rate will adjust (up or down) based on the current market index and your loan’s margin, so you will receive a new monthly mortgage payment amount.

First Adjustment Cap:

The first adjustment cap is the percentage limit the interest rate on an adjustable-rate mortgage (ARM) can increase or decrease at the end of the fixed-rate period, (which is when the first interest-rate change or adjustment occurs).

Fully Indexed Interest Rate:

The fully indexed interest rate is equal to the margin plus the index (an economic indicator used to determine changes in the interest rate).

Interest Rate:

The percentage you pay for the use of an amount of money for a specified period of time. Your interest rate is based on many factors - including the current rate environment, your credit and financial record, and the specific features of your loan. On a mortgage loan, your interest rate may be fixed or adjustable. An adjustable interest rate is fixed for a certain number of years, but then adjusts at regular intervals according to a market index, which may increase or decrease your payments. On a home equity product the rate may be fixed or variable. A fixed interest rate does not change during the term of your financing, which provides you with predictable, consistent monthly payments. A variable interest rate may fluctuate or change periodically, often in relation to an index, such as the prime rate, which may increase or decrease your payments.

Lifetime Cap:

The lifetime cap is the percentage limit the interest rate on an adjustable-rate mortgage (ARM) can increase over the life of the loan.

Loan or Line Amount:

Purchase mortgage: The loan amount shown includes the difference between your purchase price and your down payment, plus any closing costs you are financing.
Refinance mortgage: The loan amount shown includes the amount to pay off your existing mortgages, plus any closing costs you are financing into the loan, as well as any additional funds you are getting from the available equity in your home.
Home equity loan or line of credit: The home equity loan or line of credit amount shown is based on your estimated home value, current mortgage balance, and the amount that you are requesting.

Margin:

To set the interest rate on an adjustable-rate mortgage (ARM), lenders add percentage points to the index rate, called the margin. The amount of the margin may differ from one lender to another, but it is usually constant over the life of the loan.

Maximum Annual Cap:

The maximum annual cap is the percentage limit the interest rate on an adjustable-rate mortgage (ARM) can increase or decrease annually after the first adjustment occurs.

Maximum Lifetime Payment:

This is an estimate of the highest monthly payment amount you could expect on an adjustable-rate mortgage over the life of the loan. The amount is calculated using the maximum lifetime rate. Because future interest rates are unknown, we calculate the amount using the estimated loan balance at the earliest point the loan could reach the maximum lifetime rate.
Note: If you've entered amounts for real estate taxes and homeowners insurance, these amounts are also factored into the maximum lifetime payment amount.

Maximum Lifetime Rate:

The maximum lifetime rate on an adjustable-rate mortgage (ARM) is equal to the interest rate plus the maximum lifetime cap. It represents the highest interest rate possible over the lifetime of the loan.

Monthly Payment:

Mortgage loan: If you've entered an amount for real estate taxes and homeowners insurance, the monthly payment amount displayed includes principal, interest, taxes, and insurance. On purchase mortgage loans with a down payment of less than 20%, the monthly payment also includes an amount for mortgage insurance, which protects the lender against losses if a customer defaults. If your loan is an adjustable rate mortgage (ARM), the monthly payment shown is for the initial fixed interest rate period only, after which it can increase or decrease annually.
Home equity loan: The monthly payment amount displayed typically includes both principal and interest.
Home equity line of credit: The monthly payment displayed is based on the current interest rate shown. Since the interest rate is variable, your monthly payment may increase or decrease from month to month.
Home equity line of credit with fixed-rate advance option:
For partially amortized fixed-rate advance with a 3-year term
, the interest rate is fixed and monthly payments remain the same for the term. Your monthly payment covers interest and some principal and these payments will partially repay the advance during its term. For fully amortized fixed rate advance with terms of 5 years or more, your monthly payments of principal and interest will pay off the fixed-rate advance at the end of the term that you select.

(See Term for more information regarding the draw period and repayment period for a home equity line of credit and fixed-rate advance options.)

Term:

The term of your loan is the time limit in which a loan must be repaid. Common mortgage loan terms are 15 years, 20 years, or 30 years. Home equity loans offer terms between 5 and 20 years and the term varies based on loan amount. Home equity lines of credit have an initial period of 10 years and 1 month – known as the draw period -- in which you can access your available line of credit. When the draw period ends, you will make principal and interest payments for 15 or 20 years, depending on your account balance. Fixed-rate advances have terms of 1-5 years in which monthly payments will only partially repay the advance amount. Fixed-rate advance terms of 5 - 20 years have monthly payments which pay off the entire advance. (In Texas, the fixed-rate advance term cannot exceed the end of the draw period less one month.)

Total Existing Mortgage Balances:

Make sure that this amount represents the total of all outstanding mortgage and home equity financing accounts on the property

VA Financing Eligibility:

If you are a qualified veteran, reservist, active-duty service member, or qualified family member, you may be eligible for VA financing featuring no down payment options. Indicate your status to see applicable options.

Wells Fargo Mortgage or Home Equity customers:

Enter your account information to help determine your eligibility for Wells Fargo customer discounts. You can locate your account number (s) on your mortgage or home equity statement. Enter and click Retrieve Account Info to display your current information.

You Pay at Closing:

This amount represents the cash required to close on the loan.
For purchase loans, this includes your down payment and closing costs, minus any closing costs you are financing into the loan amount.
For refinance loans, this amount includes your closing costs minus any amount you are financing into the loan amount.
For home equity products, you can choose between two closing cost options. If you want to pay no closing costs, you’ll pay a higher interest rate to cover all required third party costs (not available for lot loans or financing greater than $500,000). If you choose to pay your own closing costs – using your loan proceeds, a line of credit, or a check – you’ll pay a lower interest rate. The amounts which are shown assume that no closing costs are being paid.

You Receive at Closing:

On a refinance, this is the amount left over from your total loan amount after your existing mortgage balances, and closing costs are paid. On an individual home equity loan or line of credit, you would receive the amount of the additional funds you requested, minus any closing costs paid.

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