Wells Fargo Home Equity Loans

Wells Fargo is a financial services company based in San Francisco and provides insurance, investments, mortgage, banking, consumer finance catering and many other services. It serves over 23 million customers from across the United States and internationally. It is one of the profound companies in the US, currently with assets valued at $500 billion and over 150, 000 employees.

Wells Fargo home equity loans come in three main categories of home equity loans and home equity loans lines of credit products. Together with the general account details, these products consist of:

Home equity loan
This is a type of fixed rate mortgage loan with fixed monthly payments and rates. With this type of loan, the borrower receives the entire amount of money upfront with the already set payments and rate charge. You are not granted the ability to redraw funds as time goes by. Ideally, people who are certain that they do not need any future financing are the best borrowers for this loan. Also, those handling expenses that require immediate financing prefer the fixed rate and monthly installments.

Depending on the loan amount, the loan term ranges between 5 to 30 years. The minimum amount that can be awarded under this category is normally $10,000. However, for those seeking to finance their primary residences, the loan amount goes up to $500,000. Vacation homes attract a high of $250,000, whilst non-owner occupied homes is awarded a maximum of $100,000.

Home equity line of credit
This category is an open-ended, revolving type of loan that allows the borrower to make future advances, but only up to the set credit limit. The money withdrawn can be used for any expenses, be it renovating the home, consolidating debts, medical expenses, investments, starting up a business or even for education fees. Simply, home equity line of credit is more like credit cards that allow you the money you need whenever you need it.

The credit is always available at any time within the draw period, which usually lasts for 10 years. You can access the credit conveniently through your Wells Fargo credit card, ATM, checking account, local banks or even online banking. After the draw period ends, the repayment duration begins. Any advances after the draw period window is closed and will be charged a small monthly payment.

The repayment period usually lasts 30 years, during which time the interest rate can be variable or fixed. The variable interest rates are usually relative to the prime lending rate that banks charge their most credit worthy customers – this is obviously affordable. The rates are subject to quarterly adjustments and they usually have a cap limit showing the highest and the lowest limit that the borrower can pay.

Just like the home equity loan, the line of credit also allows the borrower a variety of loan amounts for the different types of homes; primary residence, vacation homes and non-owner occupied. The minimum here is also $10,000.

SmartFit Home Equity 1 Account
This account allows you to receive upfront the whole amount as a fixed rate advance. You can also convert your credit balances to additional fixed rates for fixed term advances. There are no adjustments on the rates whatsoever. The draw period is usually 10 years followed by an additional 30 years of repaying the principal. There is also the provision of 3, 5 or even 7 years for initial advances.

This loan category is ideal for people who are handling huge upfront expenses as it gives continuous access to their home equity, since the funds are made available as the borrower continues to repay the principal amount.