Navegó a una página que no está disponible en español en este momento. Seleccione el enlace si desea ver otro contenido en español.

Página principal

Renovate or Remodel Your Home

Need funds for renovation or remodeling?

Make informed decisions about using the equity in your home to finance home improvements

Want to finance a home improvement or renovation project? Learn more about mortgage and home equity loan and line of credit options that may help you achieve your goal from Wells Fargo Home Mortgage, the nation's leading originator of renovation financing.

What types of improvements can I make using the equity in my home?

Financing a renovation or remodel using your home equity may allow you to:

  • Update your home's features or enjoy more living space with a newly designed kitchen, expanding a home office, or a master-bedroom suite - while remaining in your own neighborhood.
  • Make your home more functional by creating a separate living area for a family member or updating your bathrooms.
  • Personalize your home to fit your lifestyle by adding enhancements such as an enclosed porch, deck, or swimming pool.
  • Make your home more energy efficient with a new roof or replacement windows.

Home improvements have the potential of turning your house into a dream home. Whatever improvements you envision, Wells Fargo may be able to help you make your vision a realty.

How can I estimate my available home equity?

The amount you may be able to borrow is based on the available equity in your home, as well as other factors such as your credit history, loan characteristics, and property location.

To get a very general idea of your available equity for financing purposes, first make an estimate of your home’s current market value. You can find many resources on the internet to help you with your estimate. Or you may be able to request a comparative market analysis (CMA) from a real estate agent in your area.

  • Next, multiply your market value by 0.80
  • From that amount, subtract what you owe on the mortgage and any outstanding debt secured by the property

The result will give you an idea of the equity in your home that may be available for financing.

Example (for illustrative purposes only)
Your home’s current market value = $200,000
Total existing mortgage and any outstanding debt secured by your property = $120,000
$200,000 x .80 = $160,000
$160,000 - $120,000 = $40,000 estimated available equity

Other resources

  • Use our home equity calculator to get an estimate of your available equity and explore your home equity financing options.
  • A cash-out refinance can also be used to access your available equity. Keep in mind this option also refinances your existing mortgage.
  • Customize and compare loan scenarios based on your specific needs using our interactive tool.

What should I know about planning a home improvement project?

When you’re planning your home improvement project, be sure to factor in the following steps:

Define the project

  • Create a list of things you would like to accomplish.
  • Prioritize your list in the order of most important to least important.

Remember, your budget might not allow you to complete everything on your list so it’s important to determine your priorities.

Create a budget

  • Calculate how much you can contribute to the project.
  • Determine how much you may need to borrow.

If you obtain financing for your home improvement, it is an additional expense beyond your current monthly mortgage. Be sure you can comfortably manage the payment.

Select a contractor

  • The contractor with the lowest price may not always be the right person for the job. Balance long-term quality against cost.
  • Select a contractor who has proven expertise in your type of project and the appropriate licenses. Always check references and the Better Business Bureau.
  • If you use our Refinance & RenovateSM loan we’ll verify the contractor’s credentials. This detailed check includes supplier references, any contractor liens and bankruptcies, and confirms insurance and licensing. (This check is not included with a home equity loan or line of credit.)

Decide if it’s worth it

Will your home improvement or repair be worth it to you? Improvements that may add value include:

  • Creating visible curb appeal such as exterior siding.
  • Adding or improving functional living space such as a master bedroom suite, home office, or a remodeled kitchen.

Remember, a number of factors may determine whether you recover some or all of your expenses. These may include how long you remain in your home, the type of improvements you make, and the typical features of homes in your area.

What are the benefits of obtaining home financing using the equity in my home?

Using the equity in your home may provide the following advantages:

Myth

There is no financial benefit to taking out a home equity loan or line of credit.

Truth

The interest on your home equity line or loan may be tax deductible; consult your tax advisor.
 

Possible lower costs

  • Lower monthly payments. Interest rates on home equity financing are typically lower than credit cards or personal loans, which could mean lower monthly payments.
  • Potential tax benefits. Home equity interest payments are generally tax deductible. (Consult your tax advisor regarding the deductibility of interest.)
  • Fee payment options. Select the home equity closing cost option that meets your needs.

Convenience

  • Higher credit limits. Home equity financing typically has higher credit limits than credit cards or personal loans, giving you access to more funds.
  • Greater financial control. If you’re approved for a home equity line of credit, you can access your variable-rate line of credit during the draw period, paying interest and principal only on the funds you use.

If the equity in your home isn’t sufficient and you want to finance improvements, consider our Refinance & RenovateSM loan, which may allow you to borrow funds based on your home’s estimated value after improvements are made.

What should I consider when thinking about my home improvement loan options?

While you're planning your renovation project, be sure to consider the following:

Contractor requirements
Before you plan on a do-it-yourself project, make sure your financing option does not require a contractor.

Available equity

  • You should get an estimate of the cost of the home improvement project. Then compare this to the estimated equity in your home to see if a home euquity loan makes sense as a financing option. Typically, the total, including the new loan, should not be greater than 80% loan-to-value.
  • The equity in your home is the difference between your home's current market value and what you owe on your mortgage.
  • For a market value estimate, get a list of comparable area sales from a real estate agent.
  • If the equity in your home isn't sufficient, you may want to consider our Refinance & RenovateSM Loan. This type of loan may allow you to borrow funds based on the estimated value of your home after improvements are completed.
  • You may also want to consider a credit card, personal loan or a line of credit that does not rely on home equity. These may be a good choice for smaller projects.

Unexpected expenses

  • You may identify additional issues after a repair or improvement project has started. For example, rotted wood could be uncovered during a roof replacement.
  • A project can ofter run 20% to 30% higher than the original estimates. Be sure you're ready for these unanticipated costs.

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

Explore your loan options

We can help you get started learning about different home loans. Below are a few options you may want to consider based on features that may be important to you. To see additional home loans, visit Loans & Programs area.

Loan options to consider
One-time access to available equity
Ongoing access to available equity
Lower payments starting out
Fixed payments
Loan amount based on value after improvements

Refinance & Renovate SM mortgage program
View Details

es


Yes
Yes

Home equity line of credit
View details


Yes
Yes


Home equty line of credit with fixed rate advance
View details


Yes

Yes

Home equity loan
View details

es


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 1-866-383-8421
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.

Market value
The most probable price which a ready, willing and able buyer would pay and a willing seller will accept, both being fully informed under no pressure to act. The market value may be different from the price a property can actually be sold for at a given time (market price).

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.
Draw period
The length of time during which you can access funds from your account. It runs for 10 years plus one month from the date you opened your home equity line of credit.
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.