A home equity line of credit from Wells Fargo may make it possible for you to apply the available equity in your current home toward a down payment or a cash purchase of an investment home or vacation property.
With home equity financing you can:
- Pay principal and interest only on the funds you access.
- Access your variable-rate line of credit for a draw period of 10 years plus 1 month, without reapplying.
- Make additional principal payments to pay down your line of credit balance at any time without penalty, as long as your account remains open.
- Use your Enhanced Access® Visa® credit card, access checks, Wells Fargo Online® Banking, or your ATM card to access funds.
- Interest rate options. Decide whether to stay with a variable rate or convert your balance to a fixed rate for a set term with a fixed-rate advance.,
- Closing cost options. Choose the closing cost option that meets your needs.
- Potential tax benefits. Unlike personal loans or credit cards, the interest on your home equity financing may be tax deductible.
- With the variable interest rate on your line of credit balance, your monthly payments may increase or decrease as interest rates fluctuate.
- At the end of the fixed-rate advance (FRA) term, any unpaid FRA balance is converted to the line of credit and charged the variable rate in effect on the home equity line of credit at that time. The variable interest rate may significantly change your monthly payment.
- The home equity account is linked to your current home instead of the home you are buying.