Our home equity line of credit is designed to help you use the equity in your home responsibly. If you're considering a home renovation or planning for a major expense, we can help.
Annual and lifetime rate caps
Home equity interest rates are tied to the prime rate, a standard index used as a basis for determining the rate charged on borrowed money. If the prime rate increases, so does the APR on the line of credit. But with our rate caps, the variable rate on your line of credit will never increase more than 2% annually based on the date you signed your line of credit agreement. The rate will also never be more than 7% higher than where you started.
Our line of credit can adapt as your needs change. During the draw period, you can convert all or part of your variable-rate balance into a fixed rate.
Learn more about fixed-rate advances
Payments that rebuild equity
Our principal-reducing payments help you rebuild the equity in your home and pay less interest compared to other lenders’ interest-only payments.
Learn more about payments
A home equity line of credit is a revolving form of credit that uses your home as collateral. If you’re a qualified homeowner with available equity, a home equity line of credit can provide you with:
- Secured financing based on the equity in your home, which typically results in lower interest rates than many unsecured forms of credit.
- A revolving source of funds that you can borrow against and pay back as many times as you’d like during the draw period.
- Potential tax benefits The interest on your home equity financing may be tax deductible. Consult your tax advisor regarding deductibility of interest.
You will have monthly payments which include both principal and interest.
- Your minimum payment will be the lesser of $100.00 or the amount needed to repay your balance with interest.
- If you withdraw additional funds during the draw period or the variable-interest rate changes, your monthly payment may change.
- Your payments are recalculated monthly to repay your principal balance over the remaining months of your draw period and your repayment term.
Understanding the phases of a home equity line of credit
- Draw period. The draw period is the fixed length of time during which you can access funds from your home equity line of credit. It runs for 10 years plus 1 month from the date you open the account. Unless you choose to take a fixed-rate advance your annual percentage rate (APR) during the draw period is typically variable and tied to the prime rate.,
- End of draw. End of draw refers to the date your draw period ends and you can no longer access funds from your home equity line of credit.
- Repayment period. After your draw period ends, you’ll enter the repayment period. Your access to funds will end, but you’ll keep the same payment structure as in the draw period — principal-plus-interest payment tied to the variable rate.
If you’re already working with us, your Wells Fargo banker or home mortgage consultant can help you apply. Or, when you’re ready, you can apply online or call 1-888-667-1772 to get started.
Tracking the status of your application has never been easier
After you apply for a home equity line of credit, use your LoanTrackerSM to complete important tasks and check your application status — any day or time, from any computer, smartphone, or tablet. your LoanTracker is not available with all loans; talk to a home mortgage consultant for details.
What to expect during the application process
Step 1: We’ll contact you within 5 days after you submit your application to review specific documentation that we’ll need from you. We’ll then review any questions you may have regarding the process. We’ll also update you during the process to make sure everything is moving forward.
Step 2: We’ll confirm your information. We’ll make every attempt to let you know what we’ll need at the beginning of the process, but we may need additional information as we move forward.
Step 3: We’ll confirm your home’s value, either through an automated valuation service or an in-person inspection of your home. If we need a personal inspection, we’ll have a licensed real estate appraiser or broker contact you directly.
Step 4: We’ll ask for your signature, if your application is approved. Each borrower will need to sign the documents, and some of them will also need to be notarized. Please bring proper identification when you’re ready to sign.
Step 5: Congratulations! Your home equity account is now open. Depending on your transaction and property type, there may be a 3-day waiting period before you can access your funds. For your convenience, we’re pleased to provide you with several options for accessing your funds.
Our home equity lines of credit give you a number of ways to access funds, including checks and phone transfers.
Transfer funds online
Make immediate transfers from your account at any time by signing on to Wells Fargo Online® and going to the Transfer tab.
Transfer funds over the phone
Use our toll-free number with any-day, any-time automated access to your account. Advances made outside of business hours will become effective on the next business day.
Home equity line of credit checks
Use checks you receive when you open your account (if requested).
Enhanced Access® Visa® credit card
Access your available credit anywhere that accepts Visa credit cards (if requested). Worry less with Zero Liability protection so you’re not held responsible for unauthorized use of your card (or number) if reported promptly.