Wells Fargo Home Equity Review

As of April 30, 2020, Wells Fargo no longer offers home equity lines of credit (HELOCs) to new borrowers. Existing borrowers can still access funds through their draw period and must adhere to their loan terms. 

There are many suitable options available if you’re looking for alternatives. We’ll also show what you can do if you want to stick with Wells Fargo for your lending needs.

What happened to Wells Fargo home equity products?

The early days of the COVID-19 pandemic disrupted many industries and introduced unprecedented uncertainty.

Housing prices skyrocketed to record-high levels in the U.S. market. At the same time, interest rates dropped to historic lows, which led many homeowners to consider refinancing their home mortgages or tapping into their equity with a home equity loan or line of credit. 

Before May 2020, Wells Fargo offered HELOCs to eligible homeowners nationwide.

However, citing the uncertainty of the housing market and the worldwide pandemic, the bank suspended its home equity products. As of August 2024, home equity lending hasn’t resumed, and Wells Fargo hasn’t said when or whether it will make these types of products available again.

What financial products does Wells Fargo still offer? 

Although you won’t be able to take out a HELOC to tap into your home equity, Wells Fargo still offers different lending solutions, where you can take out a large sum of money. However, you won’t be able to access a line of credit and instead be able to take out a lump sum of money.  

For one, Wells Fargo still offers personal loans for various purposes like making home improvements, consolidating debts, or other large purchases. The bank also offers personal lines of credit if you don’t need to borrow as much.

You can check what rates and terms you may qualify for without affecting your credit score, as Wells Fargo can prequalify you with a soft credit check. In most cases, you may receive a loan approval as soon as the same business day.

Some benefits of the loan include:

• No origination fees or prepayment penalties
• Rate discounts if you opt into autopay using a qualifying Wells Fargo account
• Customizable loan amounts and repayment terms

For those who would rather find ways to tap into their home equity, Wells Fargo offers cash-out refinance loans. With this type of loan, you’ll take out a new, larger loan and pay off your existing mortgage. You can keep the remaining amount in cash to use for almost any purpose. 

Like a HELOC, you’ll have to pay closing costs and go through a home appraisal to assess the current market value of your home. Before taking out a loan, see whether the new interest rate and fees you may pay are worth it.

Consider comparing Wells Fargo’s cash-out refinance and personal with other options from different lenders. 

What if I already have a Wells Fargo home equity product?

If you had a Wells Fargo home equity product before April 30, 2020, the bank honored its agreement. 

Wells Fargo HELOC customers could keep their open lines of credit and continue borrowing as needed, according to the agreed terms. If you hadn’t maxed out your line of credit and were paying on any borrowed funds, you could continue borrowing through the end of your draw period. 

Wells Fargo automatically denies new applications for new home equity loans or lines of credit. You’ll need to look into an alternate bank or home equity product to borrow against your home’s value. 

Alternatives to Wells Fargo home equity products

If you’re unsure how much you want to borrow or keep a line of credit open for ongoing financing needs, Wells Fargo may not be the best choice since it discontinued its HELOC.

Instead, consider the following alternatives. Not only do these lenders have HELOCs, many offer more competitive rates. Plus, you may be able to borrow as much, if not more than what Wells Fargo offers.  

Figure

Best overall

4.9 _/5

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Why it’s a great Wells Fargo alternative

Figure offers a simpler loan process—you can apply 100% online and may receive an answer from the lender in as little as five minutes. Plus, their repayment terms are longer than Wells Fargo’s maximum of 84 months for their personal loans.

What’s more, if you’re unsure of how much you need to borrow, Figure lets you borrow up to your credit as many times as you need as long as you pay the balance. With Wells Fargo, their only options are lump sum loans.

Learn more by reading our Figure Home Equity Line of Credit review.

HELOC details

Rates (APR)	7.00% – 15.60%
Loan amounts	$20,000 – $400,000
Repayment terms	Draw: 5 years / Repayment: 5, 10, 15, or 30 years

Aven

Best customer reviews

4.8 _/5

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Why it’s a great Wells Fargo alternative

Aven stands out as an excellent alternative to Wells Fargo’s HELOC, offering a fixed interest rate throughout the life of the loan, something Wells Fargo doesn’t typically provide. 

With a lowest rate guarantee, Aven ensures competitive rates, and its fully digital application process allows for approval in as little as 15 minutes. 

This lender also offers a unique optional protection program through Securian, which covers your minimum payment for up to six months if you become unemployed. Aven’s exceptional customer satisfaction is reflected in its 4.8/5 rating from over 3,450 positive reviews.

HELOC details

Rates (APR)	6.99% – 15.49%
Loan amounts	$5,000 – $400,000
Repayment terms	5-year draw; 5, 10, 15, or 30-year repayment

Bethpage 

Best credit union

4.7 _/5

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Why it’s a great Wells Fargo alternative

One of the best reasons to choose a Bethpage HELOC is its flexibility. You can borrow up to $1 million against your home equity, though it depends on factors like the amount of home equity you have and your credit profile. Their repayment terms are also longer than what Wells Fargo offers. 

While many HELOCs are variable rate loans (where interest rates can fluctuate), qualified borrowers may be able to get a fixed-rate one. That way, your payments are more predictable. 

Read our Bethpage HELOC review to learn more.

HELOC details

Rates (APR)	12-month intro rate of 6.99% for VantageScores of 720 and up; then a variable rate
Loan amounts	$10,000 – $1 million
Repayment terms	Draw: 10 years / Repayment: 20 years

LendingTree

Best marketplace

4.5 _/5

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Why it’s a great Wells Fargo alternative

LendingTree can save you time when shopping around multiple lenders for home equity loan options. With Wells Fargo, you’re checking rates with one lender. Instead, you submit your personal information once with LendingTree and you’re able to see a list of lenders that may be a match, plus potential loan amounts and interest rates.

Keep in mind LendingTree isn’t a lender. Rather it’s a lender marketplace where you can find lenders for HELOC and home equity loans. You will still need to apply for a HELOC with the lender. 

Read more to learn about the lender, read our LendingTree Home Equity Loan review.

HELOC details

Rates (APR)	Vary by lender
Loan amounts	$10,000 – $2 million
Repayment terms	Draw: 2 – 20 years / Repayment: 5 – 30 years

How we rated the Wells Fargo HELOC alternatives

Since 2018, LendEDU has evaluated home equity companies to help readers find the best home equity loans and HELOCs. Our latest analysis reviewed 850 data points from 34 lenders and financial institutions, with 25 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.