Need to cover a big expense? You may have access to lower interest credit.

Discover the benefits of HELOCs and learn exactly how they work.

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If you’ve built up equity in your home, you may have a borrowing option available to you. A home equity line of credit, or HELOC, offers unique benefits to homeowners looking to borrow money with lower interest rates than many other forms of credit.

Is a HELOC right for you and your family? Here’s what you need to know.

What is a HELOC?

You may be familiar with a home equity loan, in which you borrow a one-time fixed amount from your home’s equity. A HELOC, however, is a revolving credit line that is secured by your equity in your home. You can borrow against and pay back your line of credit multiple times during the draw period, similar to how you would borrow and pay back money on a personal line of credit or credit card.

Homeowners who open a home equity line of credit can use their account for a variety of reasons, including:

  • To cover expenses during an emergency
  • To pay for home repairs or renovations
  • To pay property taxes
  • To fund a major expense

The benefits of a HELOC

 One big advantage of a home equity line of credit is the ease of accessing and repaying funds as needed — without needing to apply for and manage individual loans. Plus, a HELOC typically offers a lower interest rate than other forms of credit, such as a credit card.

Get consistent payments with a Fixed-Rate Advance

HELOCs have a variable interest rate that fluctuates based on the prime rate set by the federal government. However, with Wells Fargo, you may have the option of taking what’s called a Fixed-Rate Advance.

With a Fixed-Rate Advance, you’re able to convert some or all of your HELOC’s balance to a fixed-rate repayment. This structure can be an appealing option if you like knowing that you’ll have a set payment for a period of time or if you want to reduce the amount of interest you pay by locking in a fixed interest rate that may be lower than current or future variable rates.

A Wells Fargo Fixed-Rate Advance lets you reduce the amount of interest you pay by locking in a fixed interest rate that may be lower than current or future variable rates.

How to access funds through your Wells Fargo HELOC 

How do you borrow from your HELOC? You have a number of options:

  • Wells Fargo ATMs: Withdraw cash directly from your HELOC account or transfer money between Wells Fargo accounts.1
  • Electronic transfer: Instantly move funds from your HELOC account to your existing bank accounts.
  • Phone transfer: Use an automated phone system to transfer money from your HELOC.
  • Bill payment: Send money electronically from your HELOC to the payees you choose.
  • Checks: Write checks directly from your HELOC account.2
  • Credit card: If requested, you can use an Enhanced Access Visa® to make charges from your HELOC account.3

Home equity lines of credit can help you and your family hit financial goals sooner than you may have thought possible. When you’re ready to find out more, contact a home mortgage consultant to start the decision-making process.


Learn more about home equity and calculate how much your potential payment could be.

Written By: Megan Nye


1 ATM access is limited to transfer of funds only in Connecticut and New York. ATM access is not available in Texas. Other restrictions may apply.

2 Home equity checks are not available in Texas. Home equity checks may not be accepted by all merchants or other third parties, and cannot be processed electronically. You may not use these checks to pay a balance on any account you have with Wells Fargo.

3 Enhanced Access Visa credit card is not available in Connecticut, New York, or Texas.