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.
Here’s a look at the best alternatives and what to know if you stick with Wells Fargo for your lending needs.
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Best alternatives to Wells Fargo home equity loans and HELOCs
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
Why it’s a great Wells Fargo alternative
Figure boasts a seamless online application process that takes just minutes. Once approved, you can get your funds in as little as five days. This speed is impressive and can be crucial for time-sensitive needs. With Figure, you can redraw up to 100% of your line of credit, offering maximum flexibility and control over your finances.
HELOC details
| Rates (APR) | 8.35% – 16.55%ⓘ |
| Funding amount | $15,000 – $400,000 |
| Repayment terms | Draw: 2 – 5 years / Repayment: 5, 10, 15, or 30 years |
Aven
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.
It offers a streamlined, tech-driven approach to accessing home equity, featuring the lowest rate guarantee and fast funding times. With a 100% digital application process, Aven makes it possible to go from initial screening to closing in just 15 minutes.
HELOC details
| Rates (APR) | 6.99% – 15.49% fixed |
| Loan amounts | $5,000 – $400,000 ($100,000) |
| Repayment terms | Draw: 5 years / Repayment: 5, 10, 15, or 30 years |
FourLeaf
Why it’s a great Wells Fargo alternative
One of the best reasons to choose a FourLeaf 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 FourLeaf HELOC review to learn more.
HELOC details
| Rates (APR) | 6.99% for 12 months for qualified borrowers, then variable starting at 6.75%ⓘ |
| Loan amounts | $10,000 – $1 million |
| Repayment terms | Draw: 10 years / Repayment: 20 years |
LendingTree
Why it’s a great Wells Fargo alternative
LendingTree is the top choice for comparison shopping HELOCs and home equity loans.
The platform’s user-friendly interface and comprehensive comparison tools make finding the best rates and terms tailored to individual financial situations easy.
With LendingTree’s extensive network of lenders, borrowers can confidently choose the most competitive option.
Loan details
| Rates (APR) | Starting at 6.24% |
| Loan amounts | $10,000 – $2 million |
| Repayment terms | Draw: 2 – 20 years / Repayment: 5 – 30 years |
Why doesn’t Wells Fargo do home equity loans or lines of credit?
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.
How do these alternatives compare to Wells Fargo HELOC rates and terms?
The lenders on this list generally offer rates and terms that are in line with—or sometimes more flexible than—what Wells Fargo previously provided. This applies whether you’re considering a HELOC or a home equity loan.
Most HELOCs today still come with variable rates tied to the prime rate, so your rate can change over time. That’s similar to how Wells Fargo structured its HELOCs. That said, some lenders now offer fixed-rate or hybrid options, which can make payments more predictable.
Home equity loans work a bit differently. They typically come with fixed rates and set repayment terms, making them a more stable option if you prefer consistency.
As for rates, the best offers—across both HELOCs and home equity loans—still go to borrowers with strong credit, low debt, and plenty of equity. What’s improved is how easy it is to compare options. Online lenders and marketplaces make it much simpler to shop around and find a competitive deal.
What 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 other lending solutions that let you borrow a large sum.
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.
Learn more about lines of credit vs. personal loans
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.
Compare Wells Fargo with the top-rated personal loan and cash-out refinance lenders.
What if I have a home equity loan or HELOC from Wells Fargo?
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.
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.
About our contributors
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Written by Sarah Li CainSarah Li Cain, AFC®, is a finance writer with more than 10 years of experience in consumer financial products, mortgages, banking, and insurance. She also works with brands to launch and produce podcasts.
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Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.