Need flexible monthly payment options and ongoing access to available funds? With variable-rate and fixed-rate advance, (FRA), options, our Wells Fargo home equity line of credit may be a good option if you’re looking to:
- Make home improvements
- Finance major purchases
We provide the information you need to:
Make an informed decision • Find a low interest rate • Get your funds quickly
With a home equity line of credit, you can:
Payments on a home equity financing may be lower than you think.
- Interest-rate options: You can decide whether to stay with a variable-interest rate or convert to a fixed-interest rate without refinancing.1, 2
- Payment choice: Select a fixed-rate advance option with a range of payment terms or choose the variable-rate option.
- Closing cost options: Select the home equity closing cost option that meets your needs.3
- Potential tax benefits: Unlike personal loans or credit cards, the interest on your home equity financing may be tax deductible.4
Wells Fargo customer relationship discountYou may be eligible for a relationship discount of 0.375% with a qualified Wells Fargo deposit account and automatic payments.5
- At the end of the fixed-rate advance (FRA) term, any unpaid FRA balance reverts to the line of credit and charged the variable rate in effect on the home equity line of credit at that time. Unless you’ve reduced your balance, the variable interest rate may significantly change your monthly payment.
- If you choose a variable-interest rate for your line of credit balance, your monthly payments may increase or decrease as interest rates fluctuate. You can convert any or all of your outstanding variable-rate line of credit balance to a fixed-rate advance with a variety of terms.
For your home equity needs:
Variable Interest Rate
An interest rate that may fluctuate or change periodically, often in relation to an index, such as the prime rate or other criteria. Payments may increase or decrease accordingly.
This option gives you the flexibility to secure a fixed interest rate on any or all of your outstanding line balance during the draw period. As you pay down your fixed-rate balance, your available credit on your variable line of credit increases.
Gradual elimination of a debt, such as a mortgage, in regular payments of principal and interest, over a specified period of time.
Principal and Interest (P&I)
These are two of the main components of your monthly payment on a mortgage or home equity loan. The principal portion of your payment reduces your loan amount. The interest portion is your cost for the use of the principal for that month. If your mortgage loan payments also include property taxes and homeowner's insurance (and mortgage insurance, if applicable), the monthly payment amount is referred to as PITI.
The Interest-Only payment feature will allow you to make minimum interest payments for a set period of time, then full principal-and-interest payments for the rest of your loan or line term. At the end of the interest-only period, you will be required to pay down the outstanding principal, which will increase your monthly payment, possibly substantially, even if you have a fixed interest rate.
Closing Cost Option
Most home equity financing offers two options:
Have us pay your closing costs
Have us pay your closing costs
- You pay a higher interest rate to cover all required third party costs
- This option is not available for lot loans or financing greater than $500,000
Pay your closing costs
For details, please call 1-888-421-4672.
- You pay a lower interest rate
- Pay with your loan proceeds, line of credit, or a check
For details, please call 1-888-421-4672.
The length of time during which you can access funds from your account. It runs for 10 years plus one months from the date you opened your home equity line of credit.
1 There is no limit on the maximum amount of a fixed rate advance taken at origination (up to your credit limit). The minimum fixed rate advance amount is $10,000. After account opening, additional fixed rate advances may not exceed $250,000 of the aggregate principal balance, or your credit limit, whichever is less. You may request up to 2 fixed rate advances each year with up to 3 fixed rate advances at one time. Fixed rate advances have a term of 1 to 20 years, depending on the amount advanced; except that for Texas homestead secured accounts, the term is 1 to10 years.
The home equity line of credit Annual Percentage Rate (APR) is variable and is based on the highest Prime Rate published each day in The Wall Street Journal Money Rates Table (the "Index"), plus a margin. The index as of the last change date of December 17, 2008, is 3.25%. As of April 11, 2014, current margins for lines of credit from $20,000; maximum $500,000 secured by owner-occupied properties with 70% combined loan-to-value range from 3.750% to 0.375% resulting in corresponding variable APRs ranging from 7.000% to 3.625%. For larger loan amounts, please contact us. Minimum APR is 1.00%; maximum APR is 18%. APR does not include costs. Your APR will be based on the specific characteristics of your credit transaction, including evaluation of credit history, CLTV, property type, amount of credit, term and geographic location. There is a $75 annual fee which is waived for the first year. If provided for in your original contract, the fee will be waived thereafter if you maintain a minimum average daily balance of $20,000 or more for twelve consecutive months previous to the annual fee assessment date. The prepayment penalty fee will be $400 for lines of credit $20,000 or greater. Opening fees may be paid to Wells Fargo, its affiliates or third parties and range from $19 to $9,000 depending on the property type, the state in which the property is located and the amount of credit extended and include applicable state or local mortgage taxes. This Account has a Draw Period of 10 years plus 1 month, after which you will be required to repay any amounts within a 15- or 20-year term, depending upon your account balance. Hazard and, if applicable, flood insurance required.
3 Access checks not available in Texas. ATM card access and the Enhanced Access Visa credit card are not available in Connecticut, New York, or Texas..
4 Consult your tax advisor regarding deductibility of interest.
New Wells Fargo home equity accounts are subject to credit qualification, income verification, and collateral evaluation. Additional restrictions, limitations and exclusions may apply, please contact a Wells Fargo banker for further details. For home equity, The Wells Fargo PMA® Package discount is 0.375%. Only one qualifying discount per new Wells Fargo home equity line of credit will apply. To qualify for the discount, customers must maintain a PMA Package checking account and continued automatic payments from a Wells Fargo checking or savings account. If the qualifying checking account is closed, or if the automatic payment is not selected or is cancelled at any time after the credit account is opened, the interest rate and corresponding monthly payment may increase. Additional restrictions, limitations and exclusions may apply; please contact a Wells Fargo banker for further details.