Need a larger mortgage with greater payment flexibility? Pair your first Wells Fargo Home Mortgage with a home equity line of credit. Enjoy even more benefits if you’re eligible for our Home Asset ManagementSMAccount.1
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Make an informed decision • Find a low interest rate • Get your funds quickly
With a mortgage plus a home equity line of credit you can:
- Pair a first mortgage with a home equity line of credit for financing based on your needs.
- Choose from a variety of fixed-rate and adjustable-rate mortgage options.
- Convert all or a portion of your variable interest-rate home equity line of credit balance to a fixed-rate advance. You can also ask to convert a fixed-rate advance to your line of credit balance.2
- Access available funds from your line of credit for a draw period of 10 years and 1 month.3
- Payment flexibility: Combining a mortgage and home equity line of credit may provide greater payment flexibility.
- Potential tax benefits: Unlike personal loans or credit cards, the interest on your home equity financing may be tax-deductible.4
- Interest rate options. Avoid monthly payment changes by converting your home equity line of credit balance from a variable rate to a fixed-rate advance for the term that you select. As rates change, switch part or all of your balance to a fixed-rate advance.2
- At the end of the fixed-rate advance term, any unpaid advance balance will revert back to your line of credit and charged the variable rate in effect when the balance reverts to your line of credit.
- The interest rate on a home equity line of credit is variable, so your monthly payment may change according to the market rate unless you convert to a fixed-rate advance.4
For your mortgage needs:
For your home equity needs:
Loan- to-Value (LTV)
The ratio of the amount of a potential mortgage to the value of the property it is intended to finance, expressed as a percentage. For purchase mortgage loans, the value of the property is the lesser of the sales price or the appraised value, as determined by a professional appraiser. For refinances, the appraised value is used.
Private Mortgage Insurance (PMI)
Private mortgage insurance (PMI) protects the lender against a loss if a borrower defaults on the loan. It is usually required for loans in which the down payment is less than 20% of the sales price or, in a refinancing, when the amount financed is greater than 80% of the appraised value.
The Home Asset ManagementSM Account is not available in Texas.
2 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. Amortized fixed rate advances have a term of 5 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 February 14, 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.
4 Consult your tax advisor regarding deductibility of interest.