TEXAS HOME EQUITY LOAN

Home equity loans are used when you want to borrow a specific dollar amount against the equity in your home, and are available on both homestead and non-homestead properties. A homestead property is generally considered your primary residence in Texas. A non-homestead property is typically a second/vacation home, or a rental/investment property.

The money can be used for a variety of purposes, such as refinancing, home improvements, debt consolidation¹, vacations, and more.

Why a home equity loan may be right for you:

You may be able to deduct your interest expense on your taxes, just like your mortgage²
The closing cost is typically lower than refinancing your first mortgage
You may be able to borrow against the available equity in your home, up to 80% of the value of your homestead property³

Features of a Wachovia home equity loan include:

Up to 30-year terms⁴
$10,000 minimum loan amount
Up to $2.5 million for loan requests to access equity ⁵
Up to $250,000 for purchase requests
Ability to pay interest-only on the initial 1-, 3-, or 5-year term of the loan with a fixed rate, and amortizing payments for the remaining loan term ⁶

The links below can also help you make a more informed decision and show you how the application process works.

Texas Home Equity Comparison Chart

How to Use the Equity in Your Home

Understanding the Application Process

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¹ While consolidation may decrease your overall monthly payment obligations, refinancing pre-existing debt with a home equity loan/line will require you to give Wachovia a security interest in your home and may increase the total number of monthly debt payments, as well as the aggregate amount paid by a borrower over the term of the mortgage loan. Debt consolidation restrictions may apply.

² Consult your tax advisor concerning interest deductibility.

³ Loan amounts are based upon collateral value, creditworthiness and state maximum loan to value limitations. In accordance with state law, the maximum loan to value ratio may not exceed 50% of the fair market value of your homestead property and the combined loan to value ratio may not exceed 80% of the fair market value of your homestead property. For non-homestead properties, the combined loan to value ratio may not exceed 100% of the fair market value of the property. The loan amount you may receive will satisfy the state maximum loan to value limitations, but may be limited further based upon the value of your collateral and your creditworthiness.

⁴ For example, repayment of a 15 year home equity loan would consist of 180 monthly payments of $9.98 per $1,000 borrowed at 8.67% APR. The APR is subject to change without notice and is not guaranteed until locked. The maximum loan amount for this rate is $49,999. The disclosed APR assumes that a 1% the origination fee is added to the loan amount. In certain states, if your property is a primary residence or second home and if you have an account relationship with Wachovia (qualifying Wachovia accounts include checking, savings, money market or Command Asset Program), then your APR include a 0.15% rate reduction, with an additional .10% rate reduction to have an automatic payment draft on the new loan The auto draft reduction will terminate if you do not choose to use auto draft or if auto draft is ever cancelled. The minimum loan amount for this product is $8,000 and the maximum is $2,500,000. These minimums and maximums vary by state. Other fixed and adjustable rates and terms available.

⁵ Maximum loan amounts vary by state.

⁶ For example, a $100,000 Adjustable Rate home equity loan with a term of 360 months and an initial fixed term of 3 years (other initial fixed terms are available) at an interest rate of 7.01% (7.11% APR) for 36 months would have a monthly payment of $672.66. Thereafter, the interest rate applicable to the remaining balance will be based on an index (the London InterBank Offered Rate as published in The Wall Street Journal, Eastern Edition) plus the margin stated in the Note and the monthly payment will change annually according to the terms of the Note. The interest rate cannot increase or decrease more than 2.00% annually at the end of the initial fixed-rate period or more than 6.00% over the life of the loan. (Different interest caps may apply depending on the initial fixed term chosen.) If the interest rate were to increase by 2.00% after the initial fixed term, your payment would increase from $672.66 to $813.43 at the beginning of the fourth year and could adjust every year thereafter. If the interest rate were to increase by the maximum of 6.00%, the monthly payment could rise to a maximum of $1118.14. Other rates and terms available. Products not available in all states.

All loans and lines of credit are subject to credit approval, verification, and collateral evaluation and are originated by Wachovia Mortgage, FSB, Wachovia Bank, National Association, Wachovia Financial Services, Inc., or where applicable Wachovia Bank of Delaware, National Association. Products are not available in all states and are subject to change without notice.

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