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