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Home Mortgage Services
Whether you're adding on to your current home, building or moving to a larger one, purchasing or renovating a home, or getting that special home away from home, our affiliated lending specialists offer diverse home mortgage services that provide the options you need. Finding the mortgage that fits your needsChoosing a home equity loan or line of credit
Other home financing alternatives
Once you've found the home that's right for you, the next step is to find home mortgage services that fit your needs. We can help by providing you access to mortgage services featuring a variety of home financing options from which to choose:
• Pick-a-Payment PremierSM. Decide how much to pay on your home loan each month by choosing up to four payment options: minimum payment, interest only, standard 30-year principal and interest, and 15-year Payment Plan. Fixed- and adjustable-rate loans are available.1
• Interest-only. Make interest-only payments to free up cash flow for other purposes, reduce monthly payments and potentially maximize tax deductions. Available in 10-, 15-, 20- and 30-year fixed rate loan terms.2
• Fixed rate. Offers traditional fixed-rate mortgages available in 10, 15-, 20- and 30-year fixed-rate loan terms.3
• Fixed-to-adjustable. Gives you the flexibility of obtaining a mortgage at a lower interest rate for a fixed period of time, which then converts to an adjustable rate mortgage for the balance of the term. Choices include terms of six months and one, three, five, seven or 10 years.4
• Construction-to-permanent mortgage. Finance the construction of a new home with interest-only payments during the construction phase. Once the home is built, the loan converts to a traditional mortgage.
You might consider a home equity line of credit or a home equity loan for a variety of reasons. Accessing the equity in your home can help you make home improvements, tackle education expenses or start up a small business, just to name a few.
• Home equity line of credit. This revolving line of credit secured by the home will be accessible for either 10 or 15 years. Rates are based on the prime rate6 or LIBOR7 index.
• Home equity loan. The home equity loan is a fixed-rate, fixed-term and fixed-payment second mortgage that's based on the LIBOR index.
Your Financial Advisor and lending specialist can explain how a home equity loan or line of credit can help you meet immediate and future needs, manage taxes8 and potentially reduce monthly payments by consolidating more costly debt.9
When time isn't on your side, there are other financing alternatives can help you turn your dream home into a reality.
• Lot loans provide financing when you have found the land you want to build on, but aren't quite ready to break ground. This land-only financing may be rolled into permanent financing when construction is complete.
• Bridge loans provide short-term financing that allows you to buy a new home prior to selling an existing home.
1 Payment option mortgages, such as the Pick-A-Payment Premier, gives the borrower the option to make one of up to four different payment elections each month for up to 10 years. The borrower can make a full payment of principal and interest based on either a 15 or 30-year amortization, pay only the interest portion of the 30-year payment, or pay somewhat less than the interest owed on the loan in a minimum payment. If the borrower chooses the minimum payment option, the shortfall between the payment made and the interest owed is added to the balance of the loan and the loan is "negatively amortized". This is considerably different than a fixed rate loan, ARM or interest-only loan as the balance you owe on your mortgage will actually increase. In other words, a loan that negatively amortizes could cause you to lose equity in your home and your loan balance to exceed the home's value.
2 The interest-only option allows for monthly payments for up to the first 10 years of the 30-year mortgage to be comprised of interest only, calculated based on your outstanding principal balance each month. For example, a $400,000, fixed-rate mortgage with interest-only payments at an interest rate of 6.625% (6.78% APR) would require initial monthly interest payments of $2,208.33 each. During this interest-only period, your principal balance will not decrease unless you voluntarily make principal payments in addition to the required monthly interest payments. Beginning with the 11th year, your monthly payments will adjust to cover the unpaid principal balance and interest required to fully repay the loan over the remaining term. In the example above, a recalculated monthly principal and interest payment based on the remaining principal balance of $400,000 would be $3,011.80. Other rates and terms are available. The terms used in this example are for illustrative purposes only and the actual terms you receive may be different depending on your individual circumstances.
3 For example, a 30-year fixed rate loan for $200,000 with a 6.50% interest rate (6.634% APR) would require 360 monthly principal and interest payments of $1,264.14. Other rates and terms are available. The terms used in this example are for illustrative purposes only and the actual terms you receive may be different depending on your individual circumstances.
4 For example, on a 12-month LIBOR Adjustable Rate Mortgage the interest rate and payment is fixed for the first twelve months of the loan. The interest rate and payment may adjust every twelve months thereafter and may not increase or decrease more than 2.0% at each twelve-month adjustment. The interest rate cannot increase more than 6.0% over the term of the loan. For example, on a $200,000 loan for a 30-year term with an initial rate of 6.0% (6.223% APR), repayment will consist of 12 monthly payments of $1,199.10. If the interest rate were to increase by the maximum six percentage points to 12.00%, then the monthly payment would increase from $1,199.10 to a maximum of $2,057.23 in the fourth year. Other rates and terms are available. The terms used in this example are for illustrative purposes only and the actual terms you receive may be different depending on your individual circumstances.
5 There are costs of setting up a home equity line of credit that may include some or all of the following: home appraisal, application fees, and closing costs. Failure to repay the amounts you've borrowed, plus interest, could lead to the loss of your home.
6 The prime rate, or prime interest rate, is the interest rate charged by banks to their best or most favored customers and is among the most widely used rate to establish rates for home equity lines and credit cards. The prime rate does not change regularly, but instead fluctuates based on the federal funds rate established by the Federal Reserve. Wachovia Corporation and its entities use the prime rate listed in the Wall Street Journal, Eastern Edition, to set prime lending rates for its customers. This prime rate is used in conjunction with a margin that is determined by the customer's credit score, line options, line amount, property state location and available equity. Loans based on the prime rate are variable and will adjust as the prime rate increases or decreases.
7 LIBOR is an abbreviation for the "London Interbank Offered Rate," and is the interest rate offered by a specific group of London banks for U.S. dollar deposits of a stated maturity. Your actual Libor interest rate will equal the published Libor rate plus the margin set by Wachovia. Your payment will be based on the index rate, bank margin, loan balance and the remaining loan term.
8 Neither A.G. Edwards, nor its affiliates are legal or tax advisors. If legal, accounting, or tax assistance is required; the services of a competent professional should be sought. Our Financial Advisors will be glad to work with you, your accountant, tax advisor and/or attorney to help you meet your financial goals.
9 Consolidation may decrease your monthly payments, but refinancing existing debt with a new home equity loan or line of credit requires you to give the new lender a lien against your home and may increase the total number of payments and the total amount you have to pay over the loan term.
Lending and other banking services available through the Banking Services Group of Wachovia Securities are offered by banking and non-banking affiliates of Wachovia Corporation, including, but not limited to Wachovia Mortgage, FSB, Wachovia Mortgage Corporation, Wachovia Bank, National Association, Wachovia Bank of Delaware, National Association, or Wachovia Financial Services, Inc. All loans and lines of credit are subject to credit approval, verification and collateral evaluation. Products are not available in all states. Programs, rates, terms and conditions are subject to change without notice. Certain restrictions apply.
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