| Think you already know what this subject is | | | | loan over a fixed period of time after the |
| all about? Chances are that you dont, but by | | | | draw period has ended. Some of these plans |
| the end of this article you will! Wells Fargo | | | | allow up to thirty years repayment time. |
| offers a revolving credit line for homeowners | | | | |
| called Home Equity Lines of Credit, or | | | | Interest of Wells Fargo Home Equity Lines of |
| HELOCs. This line of credit is an open-ended, | | | | Credit is variable and tied to the Prime |
| revolving loan that allows future advances up | | | | Lending Rate, the rate in which most major |
| to the approved credit limit. | | | | banks charge their largest and most credit |
| | | | worthy customers. This variable rate usually |
| You can use the money for home improvements, | | | | has a cap to limit how high of an interest |
| debt consolidation, medical expenses, | | | | rate can be charged and some have limits as |
| investment opportunities, starting a | | | | to how low the interest rate can get. |
| business, education, a new car or boat, or | | | | Variable rates are subject to quarterly |
| any other major expense. Since Wells Fargo's | | | | adjustment though some plans offer a fixed |
| Home Equity Lines of Credit are revolving | | | | interest rate. The interest paid on Wells |
| loans, you can use only the money you need | | | | Fargo Home Equity Lines of Credit is only |
| when you need it, much like credit cards. | | | | paid on the funds that are used and is |
| | | | usually tax deductible. |
| This credit is available at any time during | | | | |
| your draw period with convenient access | | | | Like Home Equity Loans, Home Equity Lines of |
| through your Wells Fargo credit card, | | | | Credit have fees that may be charged for |
| checking account, ATM, online banking, or | | | | taking out the loan. Some plans call for |
| local bank. The draw period of a Home Equity | | | | one-time; up front fees while others have |
| Line of Credit is the amount of time the line | | | | annual fees. Plans that offer low monthly |
| of credit is open, usually ten years, after | | | | payments during the draw period may require a |
| which the line of credit is closed and | | | | balloon payment at the end of the loan period |
| repayment starts. | | | | requiring the entire remaining balance to be |
| | | | paid. |
| Keep reading further to learn how this topic | | | | |
| can benefit you, as the rest of this article | | | | Other fees can also apply such as appraisal |
| will supply you will the needed information. | | | | fee, credit check fee, and closing costs. The |
| | | | Federal Truth in Lending Act protects the |
| Advances taken out during this draw period | | | | borrower by requiring the lender to inform |
| may have small monthly payments in which only | | | | the borrower of all costs and terms when the |
| minimal amounts are paid toward the principle | | | | application is given. Still need more |
| with the rest of the payment going to accrued | | | | information about this topic? To learn more, |
| interest, or interest only payments may be | | | | visit your local library or do a simple |
| made. Wells Fargo offers plans that allow | | | | Internet search. |
| repayment of the Home Equity Line of Credit | | | | |