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Wells Fargo Home Equity Loan and Line of Credit Comparison
|Account name||Wells Fargo Home Equity Account|
(Home Equity Line of Credit)
|Home Equity Loan|
|Possible uses|| Home improvement |
Life events, such as a wedding
|Large, one-time expense|
|Account type||Line of credit with a fixed-rate advance option||A fully amortized loan for one-time expenses|
|Access to funds||Ongoing access to available credit now and in the future||Specific loan amount paid out up-front for a one-time, immediate need|
|Interest rate||Variable and fixed-rate options||Fixed|
|Loan amount range||$20,000 – $500,000 (For larger loan amounts, please contact us.)||$10,000 – $500,000 (For larger loan amounts, please contact us.)|
|Fees||$0 Application fee1|
A choice of closing cost options1
|$0 Application fee2|
A choice of closing cost options2
|Payment option||Flexible variable- and fixed-rate options||Principal and interest payments|
|Loan term||10 years plus 1 month draw period1||A variety of loan terms|
|May be a good choice if you're looking for:|
|Wells Fargo Relationship Benefits:|
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
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.
Closing cost options
Most home equity financing offers two options:
- You pay a higher interest rate to cover all required third party costs
- This option is not available for financing greater than $500,000
Pay your closing costs
- You pay a lower interest rate
- Pay with your loan proceeds, line of credit, or a check
For details, please contact us.
The 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 to $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%. The quoted APR includes a 0.375% discount for a qualified Wells Fargo PMA® Package relationship and 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, and term. Texas homestead properties are limited to an 80% combined-loan-to-value or 50% of fair market value, whichever is less. There is no annual fee or prepayment fee for accounts secured by Texas homestead properties. All other accounts are subject to 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. The Line of credit has a Draw Period of 10 years plus 1 month, after which you will be required to repay any amounts borrowed within a 15- or 20-year term, depending upon your account balance. Only one qualifying Wells Fargo PMA® Package relationship 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. The PMA package is free of the $30 monthly service fee for each month the statement-ending balances in qualifying deposit accounts, credit accounts (10% of outstanding eligible mortgages), and brokerage accounts (available through Wells Fargo Advisors, LLC), total $25,000 or more. Deposit accounts, including PMA Prime Checking account, offered by Wells Fargo Bank, N.A. Member FDIC. Hazard and, if applicable, flood insurance is required.
2 Minimum loan amount $10,000; (California $20,000); maximum $500,000. For larger loan amounts, please contact us. For larger loan amounts, please contact us. Monthly payments include principal and interest and may be lower or higher depending on your loan amount, APR and term. Opening fees and costs range from $19 to $15,000 based on the state in which the property is located, the amount of credit extended and includes state or local mortgage registration or local recordation tax, if applicable; all or a portion of these fees, charges and costs may be paid to Wells Fargo, its affiliates or third parties as necessary to obtain secured credit. Your APR will be based on the specific characteristics of your credit transaction, including evaluation of credit history, combined loan-to-value, property type, amount of credit, term and geographic location. Hazard and, if applicable, flood insurance required.
3 Consult your tax advisor for 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. The quoted APR includes a 0.375% discount for a qualified Wells Fargo PMA Package relationship and does not include costs. To qualify for the promotional discount, customers must maintain a Wells Fargo PMA Package, Wells Fargo Checking Packages checking account, or mortgage relationship with automatic payments from a Wells Fargo checking or savings account. If the qualifying checking or credit account is closed, or if 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. Only one qualifying additional interest rate discount per new credit account will apply. Additional restrictions, limitations, and exclusions may apply; please contact a Wells Fargo banker or Home Mortgage Consultant for further details. Terms and conditions of the promotion, accounts, products, programs, and services are subject to change and are not transferable. All credit applications are subject to credit approval.
5 The Home Asset ManagementSM Account is not available in Texas.