Top QuestionsWhat home financing basics should I understand?If you obtain home financing, you'll repay more than the amount you borrowed because the amount you repay is determined by several factors, including the interest and loan amount. Here are some terms you should understand. Show
Interest rate
Discount points
Origination charge
Loan term
Remember that interest rates only tell part of the story. The total cost of a mortgage is reflected by the interest rate, discount points, fees, and origination charges. This total cost is known as the annual percentage rate (APR), which is typically higher than the interest rate. The APR lets you compare mortgages of the same dollar amount by considering their total annual cost. Monthly mortgage paymentYour monthly mortgage payment is typically made up of four parts:
Depending upon your property location, property type, and loan amount, you may have other monthly or annual expenses such as mortgage insurance, flood insurance, or homeowner association fees. Video - The components of a mortgage paymentWatch this video to understand what makes up a typical mortgage payment – principal, interest, taxes, and insurance – and how they can change over the life of the loan. Check today's rates to see our current interest rates. How can I start my mortgage application?Get started through any of these convenient ways: Apply online Our simplified and secure online mortgage application will walk you through the process step by step. If you’re a Wells Fargo customer and use your Wells Fargo Online® username and password we’ll prefill some of your information, making it easier to complete the application.
Talk to a consultant You can also connect with a home mortgage consultant and have a conversation – about your home financing needs, your loan choices, and how much you may be able to borrow. When you’re ready, your home mortgage consultant will help you complete an application.
What happens after my mortgage application is submitted?We'll send you disclosures listing your loan terms as well as estimated payments, and your application will be reviewed by an underwriter. During the financial and property review, we'll:
Learn more about the documents you may be asked to provide. You'll need homeowners insurance to close your loan. Get started by contacting your insurance company or learning more about homeowners insurance. Can I make a mortgage payment online?Yes, you can make a payment and manage your mortgage account online, anytime. Gain instant access to your mortgage account details, loan history, tax and interest data, contact information updates, and more. It's fast and simple. Get more details What's an escrow account?An account you fund each month as part of your total monthly payment. We use it to make property tax and insurance payments for you. Items like mortgage insurance and flood insurance may also get paid from the account. Read more about how escrow accounts work or watch a video about it. More Information
Top QuestionsDo I have to own a home to get home equity financing?Home equity is what's available after subtracting what you owe on your mortgage (and any other outstanding liens) from your home's current market value. If you don't own a home and need financing, look into a personal loan that doesn't rely on home equity. How much can I borrow with home equity financing?The amount you can borrow is largely determined by your available equity, property type, and credit qualifications. To determine your available equity for a primary residence, take 80% of your home's appraised or fair market value and subtract the balances of any outstanding mortgages and liens on the property. If you qualify, the minimum home equity line of credit amount is $25,000 and in most cases the maximum is $500,000. How can I use my Home Equity Line of Credit?Your line of credit gives you convenient access to available funds at an interest rate that's typically lower than many other forms of credit. Viewing your accountYou'll receive monthly statements in the mail. And you can view your account online with Wells Fargo Online®. You can set up recurring payments so that you don't forget to make a payment, or switch to paperless statements to help prevent fraud. Accessing your fundsAccess credit when you need it. Your revolving line of credit allows you to access your available credit as you pay down your principal balance.
Using your line of creditYour home equity line of credit is an easy and convenient way to obtain financing for a variety of situations, including:
Your Home Equity financing may provide tax advantages if it’s used to improve, buy, or build a home. Talk to a tax advisor for details. Check out our quick guide to accessing your home equity line of credit online. How can I pay down or pay off my account?Paying down your home equity line of credit doesn't mean you have to close your account. In fact, there are significant long-term benefits to keeping your line of credit open, even at a zero balance. You’ll:
Of course, you may arrange to pay off and close your entire line of credit at any time. Please call us at 1-866-404-3149 to discuss your options. Refinancing your home mortgage?Depending on the current interest rates, homeowners may choose to refinance their first mortgages. Typically, the bank refinancing your first mortgage will pay off and close your home equity line of credit account. However, you may be eligible to refinance and keep your Wells Fargo home equity account open — allowing you to keep your current home equity line of credit account, terms, and access to funds — through a process called subordination. Learn more about subordination and see if it may be right for you. What are the benefits of a fixed-rate advance option?If you’d like a fixed-interest rate, a fixed-rate advance option may be the right choice for you. It’s an easy way to manage your monthly payment and protect yourself as interest rates rise. Many Wells Fargo home equity lines of credit already have this feature as part of the account.How It WorksThe fixed-rate advance option gives you the flexibility to secure a fixed-interest rate on any or all of your outstanding line balances during the draw period so your payments remain the same month after month. Benefits of a Fixed RateIn addition to securing a fixed rate, this option gives you the power to:
Use your line of credit in the way that works best for youYour home equity line of credit gives you the flexibility to configure your balance in the way that best meets your needs. Call 1-866-834-9761 to review your needs with a Wells Fargo Home Equity Specialist. Example: $50,000 Home Equity Line of Credit With An Outstanding Balance of $30,000
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What happens when a line of credit matures?Once your HELOC matures, the draw period of the loan expires and the entire balance at that point converts to a 10-year installment loan at prevailing home equity loan rates – which are higher than first mortgage rates.
What does maturity date on a HELOC mean?Maturity Date – When a loan with an outstanding balance (inclusive of any fees) becomes due. Payment Shock – A type of risk that occurs when a scheduled payment increases, usually due to an introductory rate, the end of an interest-only payment period, or an increase in rate on an adjustable rate loan.
What is end of draw date on home equity line of credit?The HELOC end of draw period is when you enter the repayment phase of your line of credit. You are now required to begin paying back the principal balance in addition to paying interest. At this point you may no longer access funds and you may no longer convert a variable rate to a fixed rate.
What is the interest rate on a home equity loan?Home equity loans have fixed interest rates, which means the rate you receive will be the rate you pay for the entirety of the loan term. As of Sep. 28, 2022, the current average home equity loan interest rate is 7.06 percent. The current average HELOC interest rate is 7.12 percent.
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