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Bank of America HELOC review

Reduce your interest rate by setting up autopay and being a Preferred Rewards member.

This Big Four bank offers HELOCs from $25,000 up to $1 million and $500,000 on second homes. It also rewards eligible customers with rate discounts — but look out for climbing APRs and early closure fees.

Details

Loan products offeredHELOC
Minimum credit score620
APR range1.99% to 24%
Repayment terms10 year draw and 20 year repayment
Loan limits$25,000 to $1 million
State availabilityAvailable in all states

Our take on Bank of America’s HELOC

Bank of America is best for borrowers looking for high-dollar home equity lines of credit (HELOCs). It offers loans up to $1 million or up to 80% of your home’s value — more than many other lenders. Customers of the bank can earn generous discounts on their interest rates.

But if you’re looking for a low maximum APR, Bank of America isn’t for you. Its lifetime interest rates are capped at 24%, well above the max rate from other banks.

Bank of America’s interest rate discounts

Earn interest rate discounts if you’re a Bank of America customer, and sign up for automatic withdrawal payments from an eligible account. Additional discounts are based on whether you’re enrolled in the Preferred Rewards program and how much you initially withdraw from the credit line.

There’s no fee to join or participate in Bank of America’s Preferred Rewards program. Your tier is based on your qualifying combined balances in your banking and investment accounts.

Preferred Rewards programGold tier — .125% discount
Platinum tier — .250% discount
Platinum Honors tier — .375% discount
Automatic withdrawal payments.25% discount
Initial withdrawals.05% interest rate discount on each $10,000 draw, up to .60% for withdrawing $60,000 or more.

Pros

  • Low fees. 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.
  • Speedy online application. Bank of America claims the online application takes 15 minutes or less.
  • Live chat feature. During business hours, reach a rep via online chat.
  • Fixed-rate option. For more predictable payments, convert all or part of your variable-rate balance to a fixed rate without paying a conversion fee.
  • HELOCs on secondary residences. Take out a line of credit up to $500,000 on your second or vacation home.
  • Large physical presence. The bank has 4,000 branches nationwide. If you prefer in-person banking, there’s a good chance a loan officer will be nearby.

Cons

  • Online application can be confusing. With a few repetitive fields, it could use an edit.
  • High maximum APR. The bank says your APR won’t exceed 24% over your loan’s lifetime. Other banks, like U.S. Bank, keep maximum interest rates under 9%.
  • Early closure fee. If you close your account within 36 months, you’ll be slapped with a $450 base fee, plus any mortgage and government taxes, recording fees and closing costs Bank of America paid on your behalf. This fee doesn’t apply to Texas HELOCs.

Apply to find out if you qualify

Like most large banks, Bank of America is tight-lipped about its HELOC eligibility requirements. Though it does say borrowers need a combined loan-to-value ratio of 80% or less. And the site suggests the best rates are reserved for Preferred Rewards customers who set up automatic payments from their Bank of America checking account and those who make large initial withdrawals of $60,000 or more.

Bank of America’s fees are lower than many competitors

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.

Bank of America reviews are standard for a bank its size

BBB rating A+
Trustpilot rating Bad
Customer reviews verified as of 30 April 2022

Bank of America is accredited by the Better Business Bureau (BBB). As of April 2022, it holds an A+ rating for its customer interaction. The BBB has recorded over 6,788 complaints in the last three years, all of which were addressed by the banking giant. 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.

On Trustpilot, Bank of America has a 1.4-star TrustScore based on 1,208 reviews. Customers praised the bank’s nationwide physical presence and personalized service, while many others complained about their experience with customer service, slow closings on mortgages and unexpected fees.

How to get for a HELOC with Bank of America

The easiest way to get a HELOC is to apply online. Follow the prompts to provide the personal and financial information needed to complete the application, upload the corresponding documents and submit your application.

You can also apply for a HELOC over the phone by calling 866-290-4674 weekdays from 8 a.m. to 10 p.m. or Saturday from 8 a.m. to 6:30 p.m. ET. Or you can hop online to schedule an appointment at a financial center.

Once your application has been processed, a home loan officer will take over your case and reach out about the next steps.

Documentation

Have the following documents ready before you apply:

  • Social Security number for you and your coborrower, if you have one
  • Employment and income information
  • Property type and location
  • Property’s estimated value
  • Mortgage balance
  • Details about your homeowners insurance and property taxes
  • Driver’s license or government-issued photo ID

What types of home equity products does Bank of America offer?

This bank only offers a HELOC option to access your home’s equity. But you can convert what you draw on your HELOC account into a fixed-rate loan lasting anywhere from one year to the maturity date of the HELOC’s repayment term. The minimum you can convert is $5,000, and you may convert during your draw or repayment period.

Other mortgage products Bank of America offers

Bank of America offers the following mortgage product options:

  • Conventional
  • FHA
  • VA
  • Jumbo
  • Mortgage refinance loans
  • Affordable Loan Solution mortgage
  • Freddie Mac Home Possible mortgage

Compare interest rates for home equity loans, HELOCs and cash-out refinancing

Use our tool to get personalized estimated rates from top lenders based on your location and financial details. Select whether you’re looking for a Home Equity Loan, HELOC or Cash-Out Refinance.

If you selected a home equity loan or HELOC, enter your ZIP code, credit score and information about your current home to see your personalized rates.

In the Cash-Out Refinance tab, select Refinance and enter your ZIP code, credit score and other property details to see what you might qualify for.

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