Bank of America
- HELOC
- From 9.9% (see website for introductory offers)
- Not disclosed
- 800-763-4820
Headquartered in Charlotte, North Carolina, Bank of America is the second largest bank in the US.
In addition to savings accounts, mortgages and credit cards, this nationwide lender offers home equity lines of credit, or HELOCs, in all 50 states and the District of Columbia. Its products and services are available online, through the company’s mobile app and in person at its branches.
One of the biggest benefits of a Bank of America HELOC is the option to convert a portion of your line of credit into a fixed-rate loan. HELOCs typically have variable interest rates that fluctuate depending on the economy and interest trends overall. If you’re looking for the flexibility of a HELOC with the security of a fixed-rate loan, a Bank of America HELOC could be a good option.
Bank of America: At a glance
| Types of loans offered | HELOC |
|---|---|
| APR range | From 9.9% (see website for introductory rate offers) |
| Loan amounts | $25,000 to $1 million |
| Credit score requirements | Undisclosed |
| Repayment terms | 10-year draw period, 20-year repayment period |
| Average time for application | As little as 15 minutes |
Pros
Minimal to no fees: There’s no application fee or annual fee with a Bank of America HELOC. The bank also says it will pay closing costs for lines of credit up to $1 million.
Discount: A 0.25% rate discount is available if you enroll in auto-pay before or during your HELOC application with an eligible Bank of America deposit account.
Fixed-rate conversion: You can convert a portion (up to 90%) of your loan balance to a fixed-rate option at no cost.
Cons
Preference for Bank of America clients: Only Bank of America Preferred Rewards members are eligible for certain discounts, like a rate deduction of up to 0.625% on HELOCs.
Early closure fee: If you close your account within 36 months for any reason, you will be charged a $450 fee and have to reimburse any third-party fees for closing costs that the bank paid on your behalf.
Higher rates for fixed loans: While you don’t have to pay a fee to convert to a fixed-rate loan, your new interest rate will be slightly higher than your original variable rate.
Home equity loan product options
With a Bank of America HELOC, you can borrow as little as $25,000 up to $1 million. Though the lender doesn’t disclose specific requirements, you’ll likely need at least 20% equity in your home and a solid credit score to qualify.
Bank of America originates mortgages, refinances, and HELOCs but doesn’t currently offer a home equity loan option.
However, because the bank allows you to convert a portion (up to 90%) of your HELOC balance into a fixed-rate loan, it still offers homeowners a home equity option with predictable monthly payments.
Fees
One of Bank of America’s benefits is minimal to no fees. You aren’t required to pay an application fee or closing costs, and there’s no annual fee to maintain your HELOC account, which is a common fee that other lenders may charge.
You won’t be charged a fee if you convert a portion of your HELOC balance to a fixed-rate loan option.
However, if you close your account within 36 months of opening, you must pay a $450 early closure fee and reimburse any other third-party fees the bank paid on your behalf during the approval process, such as recording fees or taxes. The fee is waived for Maryland residents with a credit line less than $25,000.
How to qualify
Because Bank of America doesn’t disclose its minimum credit score requirements, prospective clients should review their credit to ensure their scores are very good to exceptional in order to qualify for a low interest rate. Generally speaking, most lenders prefer a credit score of 700 or higher, but some lenders will accept a lower score in the mid-600 range, though you should expect to pay higher interest rates.
You’ll need the standard paperwork to prove you have adequate, verifiable income -- including your recent Form W-2, tax returns and pay stubs. You’ll also need to provide documentation for your existing mortgage and whether or not you have current homeowners insurance.
Applying for a HELOC with Bank of America
You can apply for a HELOC online, in person or over the phone with Bank of America. You also have the option to schedule an appointment via its website. The lender says its online application takes as little as 15 minutes to complete.
Customer service
Most live phone support is available Monday to Friday, 8 a.m. to 9 p.m. ET, though certain lines are also open on Saturday and Sunday. Check the website for details.
Live phone support:
- Talk to a lending specialist: 800-763-4820
- New home equity applications: 800-779-3894
- Existing HELOC clients: 800-934-5626
- If you can’t make a payment for any reason: 800-451-6362
