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Consolidate Your Debt

Interested in consolidating your debts?

If you're a homeowner, you may be able to use your home equity for debt consolidation.

Are you a homeowner exploring options to consolidate your debt? Your home is one of your largest assets. Learn more about using the equity in your home to consolidate your higher interest rate loans or credit card balances.

What should I consider before I consolidate debt?

Before you take steps to consolidate your debt, you may want to consider the following:

One loan replaces many loans

Consolidating debt into a single loan doesn't eliminate your debt; it transfers your loan balances into one loan.

Think twice about using your credit cards
Consider reducing your credit limits or closing accounts. Once your balances have been consolidated into a single loan, your credit card balances will be back to zero. If you do not use discretion with your spending, you may find yourself in even more debt.

Improve your credit

You may benefit from the information and tips available from our Smarter Credit center.

Look into your credit options

Cash-out mortgage refinance

  • Offers lower interest rates than many other forms of consumer credit.
  • Mortgage loans have longer payback periods than other types of loans. The longer loan term means you are paying back significantly more interest over the life of the loan.

Personal Loan

Consider this option if you do not own your home or do not want to use home as collateral or if you want to pay off your debt quickly.

Student Loan

If you have more than one private student loan - from Wells Fargo or other lenders - you may be able to combine them into one loan with one monthly payment.

What home financing basics should I understand?

If you obtain home financing, you’ll repay more than the amount you borrowed. How much you repay is determined by several factors, including your interest rate and loan amount. Here are some terms you should understand.

Interest rate

  • The interest rate is the percentage of your loan amount we charge you to borrow money.
  • Interest rates are based on current market conditions, your credit score, down payment, and the type of mortgage you choose. Check today’s rates.

Discount points

  • One point equals 1% of your mortgage amount. If you qualify, you may be able to pay one or more points to lower your interest rate. A lower interest rate means lower monthly mortgage payments.
  • Points are usually tax deductible. Consult a tax advisor regarding tax deductibility. On refinances you may be able to finance points as part of your mortgage amount.

Origination charge

  • On a mortgage, this amount includes all charges (other than discount points) that all loan originators (lenders and brokers) involved will receive for originating the loan.
  • The origination charge covers items including fees, document preparation, and underwriting costs, and other expenses.
  • On refinances, if you qualify, you may be able to finance the origination charge as part of your loan amount.

Loan term

  • Your loan term is the amount of time you have to pay off your mortgage balance.
  • Shorter loan terms typically mean higher monthly mortgage payments, but often have lower interest rates.
  • If you pay off your mortgage balance within a shorter term, you may pay less in total interest than with a longer-term mortgage.

Remember that interest rates only tell part of the story. The total cost of a mortgage is reflected by the interest rate, discount points, and origination charges. This total cost is known as the annual percentage rate (APR), which is typically higher than the interest rate. The APR lets you compare mortgages of the same dollar amount by considering their total annual cost.

Monthly mortgage payment

Your monthly mortgage payment is typically made up of four parts:

  • Principal . The part of your monthly payment that reduces the outstanding balance of your mortgage.
  • Interest . The part of your monthly payment that goes toward the cost of borrowing the money.
  • Taxes . The part of your monthly payment that goes toward property taxes charged by your local government. We typically collect a portion of these taxes in every mortgage payment and hold the funds in an escrow account for tax payments made on your behalf as they become due.
  • Insurance . The part of your monthly payment that pays for homeowners or hazard insurance, which provides protection against losses from property damage due to wind, fire, or other risks. Like taxes, insurance costs are usually collected and paid from an escrow account.

Depending upon your property location, property type, and loan amount, you may have other monthly or annual expenses such as mortgage insurance, flood insurance, or homeowner association fees.

Video - The components of a mortgage payment

Watch this video to understand what makes up a typical mortgage payment – principal, interest, taxes, and insurance – and how they can change over the life of the loan. 

Check today’s rates to see our current interest rates.

How will you evaluate my home financing application?

When you apply for home financing, we generally use these four main criteria to assess your application.

Income

Do you have a reliable, continuing source of income to make monthly payments?

  • Income can come from primary, second, and part-time jobs, as well as overtime, bonuses, and commissions.
  • You may use other sources of income if you want them considered for payment, provided they can be verified as stable, reliable, and likely to continue for at least three years. Some examples include retirement or veteran’s benefits, disability payments, alimony, child support, and rental or investment income.

Current debts and credit history

Do you pay your bills, loans, credit cards and other debts on time?

  • We examine your payment habits before deciding to loan you money.
  • We also review your credit history and credit score.

It's a good idea to check your credit history and correct any problems before applying. Wells Fargo also offers a series of online credit education videos.

Assets and available funds

Do you have enough funds for a down payment (if you're buying a home) and closing costs?

  • You may use funds from various accounts including savings accounts, certificates of deposit (CDs), investments, and retirement funds.
  • If you're buying a home, in some cases, you may be able to use gift funds toward closing costs and all or part of your down payment.
  • Generally, you’ll also need to show that you have additional funds in your accounts to cover several months of mortgage, tax, and insurance payments.

The property

What is the market value of the property you want to finance?

We will order a property appraisal to make sure the value of your property meets our underwriting requirements.

Responsible lending guidelines

We approve applications where we believe the borrower has the ability to repay the loan or line of credit according to its terms. We use two ratio-based guidelines to evaluate your ability to repay.

Debt-to-income ratio
Debt-to-income ratio is the percentage of your monthly income that is spent on monthly debt payments.What is debt-to-income ratio? Debt-to-income ratio is the percentage of your monthly income that is spent on monthly debt payments.

  • We compare your expected monthly mortgage payment (principal, interest, taxes, and insurance) plus other monthly debt obligations to your gross (pre-tax) monthly income.
  • Mortgage program guidelines vary, but a good rule of thumb is to keep your total debt level at or below 36% of your gross monthly income.

Housing-expense-to-income ratio

  Housing-to-income ratio is the percentage of your monthly income that is spent on monthly housing payments.
What is housing-to-income ratio? Housing-to-income ratio is the percentage of your monthly income that is spent on monthly housing payments.

  • We also compare just your expected monthly mortgage payment (including taxes and insurance) to your gross monthly income.
  • Mortgage program guidelines vary, but a good rule of thumb is to keep your housing expense level at or below 28%.

Even if you fall within the 28%/36% guidelines, make sure you’re comfortable making your monthly mortgage, insurance, and tax payments, in addition to all of your other monthly payments. Remember that homes have other costs — such as utilities, maintenance, and repairs — that may not exist if you rent.

How to calculate your ratios

What should I know about consolidating debt?

Wells Fargo's home equity options are available with no application fees and a choice of closing cost options, and have competitive rates and potential tax advantages.  (Consults your tax advisor regarding the deductibility of interest.)

To get started:

  1. Find out more about home equity rates and payments.
  2. List the type of debt you want to consolidate, such as credit cards, car payments, personal loans, and revolving charge accounts. For each account, have these ready:
    o  Account balance
    o  Interest rate
    o  Minimum monthly payment
    o  Time remaining until debt is paid in full
  3. Determine how much your new payment will be with the consolidated loan.

What can I do if I am having difficulty making payments?

If you’re facing payment challenges, don’t wait another day. We’re here to help you understand your options.

Mortgage options

Are you struggling to make your payments or think you may have difficulty making payments in the future?

Find out about possible options that may allow you to keep your home:

Home equity options

The Wells Fargo Home Equity Assist program was created to help home equity customers through difficult times. If you're having financial difficulties, you may be eligible for a reduced monthly payment or gain more time to repay your loan. Explore your options today:

  • Call 1-877-628-9584 for more information
    Monday – Friday: 8 am – 8 pm
    Saturday: 8 am – 5 pm
    Central Time
Request an appointment for a Home Equity Specialist to call when it’s convenient for you.

Explore your loan options

We can help you learn about different home loans. Review the loan choices below and visit our Loans & Programs area.

Loan options to consider
Ongoing access to available equity
Access available equity without refinancing
Fixed payments
Lower payments starting out

Home equity line of credit
View details

Yes
Yes

Yes

Home equity line of credit with fixed-rate advance
View details

Yes
Yes
Yes

Home equity loan
View details



Yes

Fixed-rate mortgages (cash-out refinance)
View details



Yes

Adjustable-rate mortgages (cash-out refinance)
View details




Yes

 Find the Right Loan for You 

Customize and compare rates, payments, and estimated closing costs.

Get started

We focus on your mortgage and home equity needs with the goal of delivering a straightforward and convenient application experience. Let us show you how easy it is to apply for mortgage or home equity financing with Wells Fargo.

The home equity application process

What are the steps to apply for a home equity loan or line of credit?

To apply for home equity financing, you must own a primary residence, investment property, or vacation home. If you don’t own property, please consider a personal loan or line of credit instead.

It's easy, fast, and secure to apply:

Step 1: Gather essential information.
Before you start, have the following information on hand:

  • Financial information. Income, asset, and expense information.
  • Property information. Estimate a realistic value of your home.
  • Funds needed. Carefully evaluate the line of credit or loan amount you'll need.

Step 2: Submit an application.
Not sure which home equity option to choose? Call us, or if you get started online and don't select line of credit or loan, one of our home equity specialists will contact you after you apply to help you understand your options.

It’s easy to get started:

  • Click. Fast, easy and secure and it will take about 10 minutes. Apply Online.
  • Call. Speak with a home equity specialist at 1-888-667-1918.
  • Come in. Find a Wells Fargo location near you.

Step 3: Provide supporting documents.
We’ll tell you which supporting documents you'll need to provide, which may include:

  • Income verification documents. These may include pay stubs or tax returns.
  • Financial documents. These may include bank statements or other asset statements.

Learn more about the documents we may request from you. If you have any questions, you can also call a home equity specialist at 1-888-667-1918 for assistance.

Do I need to pay a fee to submit my home equity application?

There is no fee to submit a home equity application. For closing cost fees, you can select the home equity closing cost option that meets your needs. If you’re a Wells Fargo customer, you may also benefit from additional discounts. 

What should I consider when applying for a home equity loan or line of credit?

  • If requesting a loan, make sure your requested amount is between $10,000 ($20,000 in California) and $500,000. For larger loan amounts, please contact us. If you prefer a line of credit, make sure your requested line amount is between $20,000 and $500,000. For larger line amounts, please contact us.
  • Carefully evaluate how much you need. Your requested amount plus the existing mortgage balance and any other outstanding liens against your property should be less than 80% of your home’s current value.
  • Provide a conservative estimate of the value of your home.
  • Follow the status of your application by signing up for Your Application Status.
  • Ask about special interest rate discounts for Wells Fargo customers.

The mortgage application process

What are the steps to apply for a mortgage?

Step 1: Gather essential information.

Before you start, have the following information on hand: 

  • Financial information : Income, asset, and expense information.
  • Property information : Estimated purchase price and down payment amount (if buying) or estimated property value and loan amount (if refinancing).

To learn more about the information you’ll need, review our homebuying application checklist (PDF)* or refinance application checklist (PDF)*

Video - The loan application process

Watch this video to learn more about the steps to complete a mortgage application.

Complete the online contact form to have a home mortgage consultant contact you.



Step 2: Begin your application

Get started through any of these convenient ways:

  • Call us at 1-877-937-9357, Monday – Friday, 7:00 am – 9:00 pm, and Saturday, 8:00 am – 4:30 pm Central Time.
  • Complete the online contact form to have a home mortgage consultant contact you.

Your home mortgage consultant will ask for the financial and property information you’ve gathered.

Step 3: Provide supporting documents.

Your home mortgage consultant will:

  • Order a credit report and request any additional documents that we’ll need from you.
  • Provide important disclosure documents to review, sign, and return, including:
    • A Truth-In-Lending Disclosure that shows  terms of the loan, the monthly payment, the annual percentage rate (APR), and the costs of making and closing the loan, including your finance charges.

Learn more about requested documents we may need.

Avoid delays by submitting legible, complete documents as soon as possible, along with any required fees.

Do I need to pay a fee to submit a mortgage application?

Yes, there is a fee to apply for a mortgage. Fees cover the cost of the credit check, verification of your financial information, and property appraisal. Fees vary by loan type and the location of the property. Your home mortgage consultant will provide specific fee details during the application process.

Is there an advantage to locking in my pricing?

If you want to avoid the possibility that interest rates will rise before you close on your home loan, you can lock in your loan pricing after your mortgage application is completed.

For more information, please refer to the Loan Pricing Disclosure.

Is the process different for some types of mortgage loans?

Yes, renovation and new construction mortgage applications involve some additional steps.

Renovation mortgages

If you're purchasing and renovating or refinancing and renovating, you'll need to estimate the post-improvement value of the property. The property appraisal obtained during the processing of your loan must support this estimate.

Visit our Home Improvement Lending Center for more information.

New construction mortgages

When you're purchasing a home from a builder, the new construction mortgage process is very similar to the process for buying an existing home. You can choose a pricing lock for an extended period. This protects you from financial market fluctuations while your new home is being built.

Visit our Construction Lending Center for more information.

After you apply for your mortgage, home equity loan, or home equity line of credit, we'll work with you to ensure that the process is a straightforward and satisfying experience. We make it easy for you to track your application status online and get answers to your questions, every step of the way.

After you apply for home equity financing

What are the steps after my home equity application is submitted?

We’ll review your application and complete the following:

  • Let you know the status of your application within two business days.
  • Request additional information such as financial documentation and income verification.
  • Order appraisal, title insurance, flood certification, and other services as necessary.

You can also track the status of your application 24 hours a day, 7 days a week.

How does the home equity closing process work?

The average time varies, but generally home equity loans or lines of credit close within 20 to 45 business days.

  • To keep things moving, be  sure to sign and return all requested documents as soon as possible.
  • If additional documents are requested, you can learn more about them in our online document library.
  • Your home equity specialist can help you understand what may be required.

Choose to close your loan in a Wells Fargo bank store, or from the comfort of home by mail if available, or if eligible, through our virtual closing option (PDF)*.

  • Return your documents within 24 hours of signing.
  • We'll activate your account after we receive your signed documents and your right-to-cancel period, if any, has expired.

For home equity lines of credit you’ll be able to access your available credit with your Enhanced Access® Visa® credit card, access checks, Wells Fargo Online® banking, or your ATM card.

After your loan closes, consider managing your account online. Wells Fargo Online® gives you convenient access to account information, tax data, and payment options. Learn more about online payments or sign up for online banking.

How can I keep track of my home equity loan or line of credit application status?

Your Application Status tool allows you to:

  • Receive updates regarding the progress of your home equity application.
  • Check your “to-do” list.
  • Find out which documents are needed, where to send them, and more.

What can I do to help my home equity loan close on time?

  • Monitor Your Application Status, where you can read and accept important account disclosures and get a list of additional items you may need to provide.
  • Make sure you sign all relevant documents, get them notarized (as needed) and return them to us as soon as possible.

After you apply for a mortgage

What are the steps after my mortgage application is submitted?

Your home mortgage consultant will submit your application for review.  If additional documents are requested, learn more about them in our online document library.

During the financial and property review, we’ll:

  • Verify your employment, income, and financial information
  • Order services such as an appraisal, title insurance, and flood certification.
  • Send you a list of conditions, upon loan approval, that have to be met before you can prepare to close your loan.

You’ll need homeowners insurance to close your loan. Get competitive quotes from multiple insurance providers through Wells Fargo Insurance.  Call 1-877-260-7471, Monday through Friday, 7:30 am to 8:00 pm or Saturday from 9:00 am to 4:00 pm Central Time.

How does the mortgage closing process work?

Prepare to close
Once your application is approved, we’ll work with you and your closing agent to complete the following steps:

  • Ensure all loan approval and closing conditions have been met.
  • Confirm or set a closing date to sign your loan documents.
  • Review the title insurance to make sure you have rights to the property.
  • Review your homeowners insurance policy to make sure you have adequate coverage.

Before your closing, you'll receive your final figures, which include closing costs, escrows and, if you’re buying a home, the down payment.  Your closing agent will let you know the dollar amount, if any, you need to bring to your closing, so you can obtain a cashier’s check.

At closing
We’ll send the closing documents to your closing agent. On your closing day, review the documents carefully with your agent, then sign and date them.

  • If you're buying a home, collect the keys and move in. Congratulations!
  • If you're refinancing, you have a three-day right-of-rescission to cancel the transaction.

After your loan closes, consider managing your account online. Wells Fargo Online® gives you convenient access to account information, tax data, and payment options. Learn more about online payments or sign up for online banking.

How can I keep track of my mortgage application?

Your home mortgage consultant can answer any questions regarding your application status. Also, our Online Application Status allows you to:

  • Track your loan every step of the way in the privacy of your own home or wherever you have internet access.
  • Receive updates regarding the progress of your mortgage application.
  • Check your “action item” list.
  • Find out what documents are needed, where to send them, and more.

What can I do to help my mortgage close on time?

Here are a few important steps you can take to help your mortgage loan close more quickly:

  • Provide accurate information during your loan application interview. Discrepancies in your credit history, employment history, or current bank account balances could delay your application.
  • We may request additional documents as we process your application. Help keep your application moving by submitting them promptly. If additional documents are requested, you can learn more about them in our online document library.
  • Do not make big purchases, take on additional debt or make large deposits or transfers unrelated to your loan until after your closing.

Is the process different for other types of mortgage loans?

Yes, renovation mortgages and new construction mortgage loans involve some additional steps.

Renovation mortgages

  • For all renovation loans, we base the appraised value on the completed improvement value.
  • Wells Fargo must approve your contractors and close the loan before work can begin. Our funding department will assist you in making interim payments to your contractor(s).
  • If you have an FHA 203(k) loan, we must perform inspections of the work before we release funds.
  • Once the inspector is satisfied with the work quality, we release the funds from the escrow account. The checks are made out jointly to you and your contractor. Typically, we do not release funds until work is completed. Upon completion of the project, we perform a final inspection and we disburse the final funds.

Visit our Home Improvement Lending Center for more information.

New construction mortgages

  • You can choose a pricing lock over an extended period. This gives you protection from financial market fluctuations over the time your new home is being built.
  • We’ll work with you to get your permanent loan approved. We’ll also get the final plans and specs so that we can order an appraisal.
  • After we have the appraisal and a fully executed purchase contract, we’ll submit the entire package for final construction loan approval.

Visit our Construction Lending Center for more information.

After your mortgage or home equity loan closes we provide a variety of ways to manage your account online. View account activity, transfer funds, make payments, and more - anytime, anywhere and at your convenience.


Manage Your Mortgage Account

Manage Your Home Equity Account

Manage Your Finances

Apply for a home equity loan or line of credit. Apply Online
Call  1-888-667-1772 or
find a location

If you are a servicemember on active duty, prior to seeking a refinance of your existing mortgage loan, please consult with your legal advisor regarding the loss of any benefits you are entitled to under the Servicemembers Civil Relief Act or applicable state law.

Closing cost options
Most home equity financing offers two options:

Have us pay your closing costs:

Pay your closing costs:

For details, please call 1-888-421-4672.
Good Faith Estimate
A document provided within three days of application that shows borrowers the approximate costs of the transaction, based on common practice in the locality. Under requirements of the Real Estate Settlement Procedures Act (RESPA), the loan originator must deliver or mail the GFE to the applicant.
Truth in Lending Disclosure
Under the federal Truth in Lending Act (TILA), lenders must provide full disclosure of credit terms. The Truth in Lending disclosure statement shows the loan term, the annual percentage rate (APR), the monthly payment schedule, the total amount of finance charge to be paid, any prepayment penalty, and other important terms.

Appraised value

The home's estimated value — known as appraised value — is an important part of your financing. If you're purchasing, this value usually needs to be equal to or more than the home's purchase price. If refinancing, the appraised value helps to determine your maximum loan amount.

Title insurance
An insurance policy that protects a lender or homebuyer (if the homebuyer purchases a separate policy, called owner's coverage) against any loss resulting from a title error or dispute. On a refinance, if the property has had a recent title insurance policy, a homeowner may sometimes be eligible for a reduced rate on the title insurance (also known as the reissue or refinance rate).
Conditions
Standard conditions include our receipt of homeowner's insurance policy, flood insurance if necessary, and an acceptable title insurance binder.
Closing agent
This is the person or company that coordinates the execution of your closing documents. May be called by different titles in different states. Some common terms are attorney, title company, settlement agent, escrow company, notary, among others.