Table of Content
Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information. You can apply for a HELOC online and the process should take as little as 15 minutes, according to Bank of America. You also have the option to schedule an appointment via its website. You'll need the standard paperwork to prove you have adequate, verifiable income -- including your recent Form W-2, tax returns and pay stubs.
The more equity you have, the more options will be available to you. Through Bank of America, you can generally borrow up to 85% of the value of your home minus the amount you still owe. Depending on tier level, Preferred Rewards members can get an interest rate discount of up to 0.625%. We ask for your email address so that we can contact you in the event we're unable to reach you by phone.
Home Equity Calculators
Bank of America offers discounts for setting up autopay, making initial withdrawals and being a Preferred Rewards client. If you set up automatic payments for your HELOC with a Bank of America checking or savings account, you will receive a 0.25 percent discount. If you make a withdrawal when you open your account, you will receive a 0.10 percent discount for each $10,000 withdrawn with a maximum discount of 1.50 percent. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site.
A home equity loan or line of credit modification may make your payments more affordable. We have even more solutions, from assistance with credit cards to help with auto loans. If you have a loan that is not owned or insured by a government entity, understand how a loan modification may make your payments more affordable. Follow the prompts to provide the personal and financial information needed to complete the application, upload the corresponding documents and submit your application. The bank says your APR won’t exceed 24% over your loan’s lifetime.
Drawbacks
Reduce your interest rate by setting up autopay and being a Preferred Rewards member. Finder makes money from featured partners, but editorial opinions are our own. Make an appointment to open an account or discuss your financial concerns at your convenience. Getting prequalified for your mortgage is an important step before you shop for a home. It tells you how much home you can buy and makes applying for your mortgage easier.
Terms can vary, but typically the draw period will be up to 10 years, after which you’ll reach end of draw and no longer be able to borrow against your HELOC. To learn more about relationship-based ads, online behavioral advertising and our privacy practices, please review Bank of America Online Privacy Notice and our Online Privacy FAQs. Also, if you opt out of online behavioral advertising, you may still see ads when you log in to your account, for example through Online Banking or MyMerrill.
Getting a Bank of America HELOC
As well as discounts based on the funds you initially use when opening the HELOC. Much like a credit card, a HELOC is a revolving credit line that you pay down, and you only pay interest on the portion of the line you use. You’ll continue to pay principal and interest on what you borrowed.
After we receive your documents, we'll contact you via phone or mail within five business days if any documents are incomplete or missing. If you need longer-term help or if your forbearance period has ended, it may be possible to change the terms of your loan if you still need help. Once your application has been processed, a home loan officer will take over your case and reach out about the next steps. Carrie Ott is a graduate of Calvin College, where she earned dual honors degrees in Japanese and linguistics before moving on to Aston University for a master of science in forensic linguistics. She has worked as a copywriter, editor, and content production manager for nearly a decade, with a focus on finance, health and wellness, and catering. She lives near Detroit with her husband and a plethora of rescue and foster reptiles.
How to get for a HELOC with Bank of America
Use your line of credit to make home improvements, pay for education expenses or consolidate your higher-interest-rate debt. And be sure to inquire about all the ways we can assist you with rate discounts. If you still owe $120,000 on your mortgage, you'll subtract that, leaving you with the maximum home equity line of credit you could receive as $50,000. Manage your account and make payments using our top-rated Mobile Banking app and Online Banking.
So you can take advantage of fixed monthly payments and protect yourself from rising interest rates. Continue to use your home equity line of credit as needed for the duration of your borrowing period, usually 10 years. The Variable Intro Rate is based upon The Wall Street Journal Prime Rate (“Prime”) minus a discount; the results in the APR state above, and can change periodically based on Prime. No customer or other discounts are available during the Variable-Rate Introductory Period.
Using a fixed-rate option, borrowers can protect themselves against rising interest rates and count on predictable monthly payments. Bank of America doesn’t charge application fees, closing costs or annual fees on its HELOC. You also don’t need to pay a fee to convert what you owe on your HELOC to a fixed-rate loan. But the bank does charge at least $450 if you close your account within 36 months. This bank covers the closing costs on lines of credit up to $1 million and doesn’t charge application or annual fees. You also won’t pay a fee for converting to a fixed-rate balance.
A home equity line of credit, or HELOC, could help you achieve your life priorities. At Bank of America®, we want to help you understand how you might put a HELOC to work for you. A HELOC is a line of credit borrowed against the available equity of your home. Your home's equity is the difference between the appraised value of your home and your current mortgage balance. Not to be confused with a home equity loan, a HELOC lets you borrow against the available equity in your home up to your credit limit. You can use your line of credit as often as you want throughout your borrowing period , which is usually 10 years.
Customers awarded the bank 1.05 stars out of 5 based on 598 reviews — standard for a traditional bank with several arms. That said, these reviews aren’t specific to the home loans division. The company’s website also offers a number of helpful tools for customers including a calculator to help you determine how much you can borrow and how much you’ll pay. You can use these tools to estimate the value of your home and what your HELOC will cost.
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