Payments that Rebuild Equity

Myth

My monthly payments will increase after the draw period.

Truth

Our payments include principal and interest, so you keep the same payment structure as in the draw period.

Our home equity line of credit features principal-plus-interest payments, unlike other lenders' interest-only payments. This means you automatically pay down a portion of your principal balance every month. As your balance is reduced, so is the amount you pay in interest, which helps you rebuild equity from your very first payment.

Even after your draw period ends, your payment structure will stay the same. The only change is that you'll no longer be able to access funds.

The example below illustrates the benefits of principal-reducing payments on a $20,000 cash advance from a home equity line of credit. Our Wells Fargo customer not only paid down $3,856 in principal, but also paid $836 less in interest during the draw period, compared to someone who paid interest only.

Assumes 4.75% APR with no change in prime rate and no additional advances throughout draw period. The other lender's payment is $79.17 compared to the Wells Fargo payment of $104.33. Your minimum payment will be the lesser of $100.00 or the amount needed to repay your balance with interest.