Bank of America offers a Home Equity Line of Credit (HELOC) starting at $25,000, which can go up to $1 million. You get 10 years to use the money, and then 20 years to pay it back.
But that's not all! If you take out an amount less than 90% of your limit, you can quickly change your variable-rate HELOC to a fixed-rate loan.
The fixed-rate loan can last from one year to the account maturity date. If you choose the fixed-rate loan, you'll know exactly how much you'll pay monthly for interest and principal.
So you won't have to worry about guessing monthly amounts or dealing with higher payments. If you want to know more about it, this Bank of America HELOC review will help you.
Bank of America Charges Fees
They won't charge you for an application fee, closing expenses, or yearly fees if you obtain a Bank of America HELOC. No costs are involved if you switch your HELOC to a fixed-rate loan.
The only cost is a $500 early termination fee if you close your account before the three-year mark. Not only this, but you will be responsible for any closing costs the bank incurs on your behalf.
If you establish autopay, you can get it from the bank, which makes it the first withdrawal and makes you a Preferred Rewards customer.
Furthermore, when you first open your account and withdraw, you can save 0.26 percent on your HELOC by linking an automated savings or checking account with a bank.
To learn more about this program, consider checking the bank's website or contacting a Preferred Rewards advisor, whether you qualify for it or not.
Bank of America HELOC Rates And Discounts
Bank of America HELOC rates are the benchmark rate for most interest rates on home equity lines of credit, or HELOCs. The margin the lender also offers you is the prime rate that will be included in your annual percentage rate, or APR.
Although they differ per lender, the suggested margins are determined mainly by your credit score, the amount you want to borrow, and your current debt.
The bank offers sample HELOC rates on its website; however, the rates displayed may differ depending on your state.
However, based on a $100,000 line of credit and two other rate discounts, the lender's website needs more information regarding the maximum APR.
- Bowwers who set up automated payments from specific Bank of America accounts are eligible for a rate discount from the lender.
- Borrowers fund their accounts with a single withdrawal during account opening.
- The bank offers a Preferred Rewards program to borrowers who participate in it.
Apply For a Bank of America HELOC | Simple Steps
Applying for a HELOC online is very simple. Once you've followed the instructions and uploaded the relevant files, you must complete the application by providing the required personal and financial details and submitting it.
And the best part? You can also apply for a HELOC easily over the phone, which saves you a lot of time. On the other hand, you can also visit a financial center's website and make an appointment.
A home loan officer will take over your case and contact you regarding the following stages when they start processing your application.
Documentation
Before applying, you need to prepare the following documents:
- If you have one, your co-borrower's Social Security number as well.
- Details on employment and income
- Type and location of the property
- Estimated value of the property
- Mortgage amount
- Information about your real estate taxes and homeowners insurance
- A license or a picture ID
What Types of Home Equity Products Does Bank of America Offer?
Bank of America HELOC reviews Reddit provides a HELOC to obtain equity from your house. However, you can convert any withdrawals made from your HELOC account into a fixed-rate loan.
It would mature on the date the HELOC matures, which may be as long as a year. You may convert at any time throughout your draw or repayment period, with a $5,000 minimum.
Other Mortgage Products Bank of America Provides
The mortgage product choices that Bank of America HELOC customer service provides are as follows:
- FHA
- Jumbo
- VA
- Mortgage refinance loans
- Affordable Loan Solution
- Freddie Mac Home Possible mortgage
Pros & Cons of Bank of America HELOC
These are a few benefits and drawbacks of home equity loans from Bank of America.
Benefits:
- If you take out at least $5,000 and up to 90% of the maximum line amount at opening, you can convert a portion of your HELOC to a fixed-rate loan.
- You can also convert all or part of your balance to a fixed-rate option during the loan period. You can complete this entire procedure without paying a single cent.
- It pays the closing costs on lines up to $1 million and does not charge you yearly or application fees for HELOCs.
- Rate reductions are offered for auto-payment setup, and extra savings of 0.126 percent to 0.376 percent are provided to valued customers.
Drawbacks:
- You don't have to take out the $25,000 minimum line amount set by the bank, but you will only be accepted if your house has enough equity.
- If you close your HELOC account within three years, you will be responsible for paying a $450 fee and any closing costs that the bank paid on your behalf.
Conclusion
In short, the Bank of America Home Equity Line of Credit (HELOC) is a flexible option for homeowners to use the money from their homes.
It comes with reasonable interest rates and easy access to funds. It is an excellent choice if you want money for home projects, paying off debts, or other needs.
So, if you are thinking of going for this option, read this Bank of America HELOC review and consider a HELOC's terms, fees, and possible risks. You must ensure it fits well with your financial goals and situation.
