Wells Fargo Home Asset Management Account

For some time now, Wells Fargo has offered a mortgage acceleration through the use of a home equity account.  They package the two as a means of managing finances and paying off a mortgage faster.

This process is referred to as an offset account and involves the use of a home equity line to reduce the amount of interest paid on a mortgage.

According to Wells Fargo, their software lets you:

Work with your growing asset without reapplying. As principal payments decrease the mortgage loan, qualified customers may become eligible for quarterly increases in their home equity line of credit. Rising market values may also be reflected in annual increases.

Access funds in many convenient ways. Request a home equity access card or use the convenience checks you’ll automatically receive. You can also go online, visit any local Wells Fargo Bank branch, or speak to our dedicated account representatives.

Set guidelines that suit your needs and your comfort level. You can choose to decline — or limit the amount of — any increase to your line of credit.

Plan for life events and make informed financial choices. It’s easy with a simplified monthly statement that combines your first mortgage and home equity account information.

Factor potential benefits into your financial plan. Unlike other types of credit or some installment loans, the interest you pay on your home equity line of credit may be tax-deductible.

Convert all or part of your line of credit’s outstanding balance to a fixed-rate, fixed-term advance. You can choose to convert to a fixed-rate, fixed-term advance anytime during the draw period. Depending on the amount you convert, you can have repayment options that may fit your monthly budget and further your financial goals.

Some sites warn that while Wells Fargo is one of the few banks to offer this product, that one may end up with a poor loan rate on their HELOC and may be better off finding a lender with the lowest rate.

This is where Money Desktop can be useful.  The Money Desktop software allows a user to use a line of credit as a means of paying off their mortgage early.  It’s also significantly cheaper than the thousands one may end up spending in fees to Wells Fargo.

photo credit: TheTruthAbout