EQUITY



by Wells Fargo market area. $295 interest-only monthly payment is based on 8.85% variable Annual Percentage Rate (APR) effective as of May 9, 2007, for a credit amount of $40,000, 90% maximum combined loan-to-value and secured by an owner-occupied residence in California, assumes excellent borrower credit history and includes a 0.25% discount for automatic payment and a 0.25% discount for a Wells Fargo Portfolio Management Account® (PMA®). If the automatic payment option is not selected or is cancelled after account opening, the APR will increase by 0.25%. This is a line of credit with a variable APR that is subject to change daily, except for Texas properties which are subject to change monthly. Minimum line amount $10,000; maximum $500,000. Texas homestead properties are subject to a maximum of 50% fair market value or 80% combined loan-to-value, whichever is less and have a $4,000 minimum draw requirement. The APR will be based on the highest Prime Rate published in The Wall Street Journal Money Rates Table (the "Index") each day, plus a margin. The Index as of May 9, 2007 is 8.25%. As of May 9, 2007, current margins for lines of credit of $10,000 to $500,000 for an owner-occupied residence range from 0.00% to 7.50%, resulting in corresponding variable APRs ranging from 8.25% to 15.75%. (APRs include a 0.25% discount for automatic payment; if not selected or cancelled after account is opened, the APR will increase.) Minimum APR 4.24%; maximum APR 18%. This line of credit is subject to a $75 Annual Fee, which is waived for the first year. A $500 Prepayment Penalty applies if account is closed within three years from date of account opening. The Annual Fee and Prepayment Penalty do not apply to lines of credit secured by homestead collateral located in Texas. Opening fees and costs range from $0.00 to $13,000 based on the state in which the property is located, the amount of credit extended and includes state or local mortgage registration or recordation tax, if applicable. All or a portion of these fees and costs may be paid to Wells Fargo, its affiliates or third parties as necessary to obtain secured credit. This line of credit has a 10-year Draw Period (for Texas properties, the Draw Period is 10-years plus 1 month), after which you will be required to repay any amounts borrowed within a 15- or 30-year term, depending upon your account balance. Your APR will be based on the specific characteristics of your credit transaction, including evaluation of credit history, combined loan-to-value, property type, amount of credit and term. Hazard insurance and flood insurance (if in a flood plain) required. A minimum total of $25,000 in qualified account balances is required for a PMA account. Qualifying PMA accounts include checking accounts, savings accounts, time accounts, brokerage accounts, bank loans, lines of credit, credit cards, 10% of outstanding balance on Wells Fargo Home Mortgage, IRAs and investment management and trust accounts, but excludes irrevocable trusts. A $25 monthly service fee will be assessed on the PMA account if statement-ending balance falls below $25,000. The PMA account is not available in all geographic areas. Interest-only payments allow you to pay only the interest on the money you borrowed for a specific period of time and will not reduce your principal balance. Interest only payment options are available only during the draw period. At the end of the draw period, your monthly payment could increase significantly because you must pay principal as well as interest and interest rates may have increased.
Interest only loans/lines provide for the payment of interest for a set period of time and payments of principal and interest for the remainder of the loan term. During the interest only period, principal is not reduced. At the end of this period, your monthly payment will increase, possibly substantially, even if you have a fixed interest rate because you will be required to pay down the outstanding principal. Always consider paying more than the minimum payment to pay down the principal. Because these product features do not require you to make principal payments during the interest only period, you may have a higher Annual Percentage Rate or interest rate than a traditional mortgage product, depending on the specific loan details.Home equity loan and lines of credit are available through Wells Fargo Consumer Credit Group, a division of Wells Fargo Bank N.A.