Finance a Major Purchase
Looking to finance a major purchase?
Wells Fargo has a variety of home equity financing options that may meet your needs.
Sometimes, life presents you with situations and opportunities that you have prepared for. Other situations are completely unexpected. The equity in your home may be able to help you finance major expenses such as:
What are the possible benefits of using the equity in my home to fund a major purchase? Show Details
- Gain potential tax benefits. Home equity and mortgage interest payments are generally tax deductible. (Consult your tax advisor on the deductibility of interest.)
- Lower your monthly payments. Interest rates on home equity and mortgage financing are typically lower than credit cards or personal loans, which could mean lower monthly payments.
- Flexible fee payment. Select the home equity closing cost option that meets your needs.1
- Benefit from greater financial control. If you're approved for a home equity line of credit, access your variable-rate line of credit during the draw period, paying principal and interest only on the funds you use.2
- Using your home equity to make payments for regular, recurring expenses may result in interest payments that are higher than the loan amount.
- The interest rate on a home equity line of creidt varies. If you cannot manage home equity payments, you may put your home at risk.
- If you are looking for an alternative to using your home equity for financing, you could apply for a personal loan or a line of credit.
Does my home have enough equity?
View loan options now.
Depending upon your loan type, property location, property type and loan amount, you may incur other monthly or annual expenses such as mortgage insurance, flood insurance, and homeowners association fees.
- Make an estimate of your home's current market value
- Multiply your market value by .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):
If your current market value = $200,000
And your 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
We also have tools and resources that can help you.
List any costs associated with your purchase:
Create a budget.
Determine when you need the funds.
Brent D. Miller
Home Mortgage Consultant
NMLSR ID 404017
Toll Free: 1-800-643-0528 Ext.8638
10900 NE 8TH ST Suite 1430
Bellevue, WA 98004
Bank closing costs
Depending on your state, you may be responsible for mortgage taxes, attorney fees and other third-party fees.
Closing cost options
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
- You pay a lower interest rate
- Pay with your loan proceeds, line of credit, or a check
For details, please contact us.