Welcome, visitor! [ Register | LoginRSS Feed

Comments Off on Wells Fargo Home Equity Lines Of Credit

Wells Fargo Home Equity Lines Of Credit

| Articles | August 24, 2011

Wells Fargo offers a revolving credit line for homeowners called Home Equity Lines of Credit, or HELOCs. This line of credit is an open-ended, revolving loan that allows future advances up to the approved credit limit. You can use the money for home improvements, debt consolidation, medical expenses, investment opportunities, starting a business, education, a new car or boat, or any other major expense. Since Wells Fargo’s Home Equity Lines of Credit are revolving loans, you can use only the money you need when you need it, much like credit cards.

This credit is available at any time during your draw period with convenient access through your Wells Fargo credit card, checking account, ATM, online banking, or local bank. The draw period of a Home Equity Line of Credit is the amount of time the line of credit is open, usually ten years, after which the line of credit is closed and repayment starts. Advances taken out during this draw period may have small monthly payments in which only minimal amounts are paid toward the principle with the rest of the payment going to accrued interest, or interest only payments may be made. Wells Fargo offers plans that allow repayment of the Home Equity Line of Credit loan over a fixed period of time after the draw period has ended. Some of these plans allow up to thirty years repayment time.

Interest of Wells Fargo Home Equity Lines of Credit is variable and tied to the Prime Lending Rate, the rate in which most major banks charge their largest and most credit worthy customers. This variable rate usually has a cap to limit how high of an interest rate can be charged and some have limits as to how low the interest rate can get. Variable rates are subject to quarterly adjustment though some plans offer a fixed interest rate. The interest paid on Wells Fargo Home Equity Lines of Credit is only paid on the funds that are used and is usually tax deductible.

Like Home Equity Loans, Home Equity Lines of Credit have fees that may be charged for taking out the loan. Some plans call for one-time; up front fees while others have annual fees. Plans that offer low monthly payments during the draw period may require a balloon payment at the end of the loan period requiring the entire remaining balance to be paid. Other fees can also apply such as appraisal fee, credit check fee, and closing costs. The Federal Truth in Lending Act protects the borrower by requiring the lender to inform the borrower of all costs and terms when the application is given.

No Tags

  

  • CONTACT LENSES

    by on January 14, 2009 - 0 Comments

    Far back in the history of mankind, in 1508, Leonardo da Vinci described and drew the sketch to express his idea of a contact lens. But it was in 1827 that Sir ...

  • Zen in a thimble.

    by on November 9, 2014 - 0 Comments

    This is a way i use to bring thoughts to the physical world. There are a great many of them, and the better you get at creating them (thinking em up)The easier ...

  • Zinc, And It's Effect On Acne

    by on November 10, 2014 - 0 Comments

    There are many different vitamins with which a vitamin deficiency of them can lead to acne problems. One such vitamin is Zinc. Zinc is one of the most important...

  • Your Trusty, Toothy Friend

    by on November 7, 2014 - 0 Comments

    Whether we like it or not, we all know that an important part of our dental care involves making regular trips to the dentist, but the foundation block of oral ...

  • Zinc: Important Mineral That Has Taken the Backseat

    by on November 11, 2014 - 0 Comments

    Zinc is a mineral that is found in almost every cell in the human body, Despite its importance, this mineral is often taken for granted. A lot of people tend to...

Articles Archives