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Bank of America HELOC review

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

finder.com’s rating: 3.9 / 5.0

★★★★★

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 for borrowers looking for high-dollar HELOCs, or home equity line of credit. It offers loans up to $1 million or up to 85% 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 .75% for withdrawing $60,000 or more.

Bank of America pros and cons

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 variable-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 there will be a loan officer near you.

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 lifetime 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.

What types of fees does Bank of America charge?

Bank of America doesn’t charge application fees, closing costs or annual fees. You also don’t need to pay a fee to convert what you owe on your HELOC to a fixed-rate loan.

Bank of America requirements

The bank is tight-lipped about its 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.

Documentation

The application will ask for the following information:

  • 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

How to apply for a home equity loan with Bank of America

To start your online application, follow these steps:

  1. Navigate to the Bank of America website’s Home Equity page and select Getting Started.
  2. Provide your personal information. If you’re a Bank of America customer, log in to autofill your application. Otherwise, choose Continue.
  3. Enter additional personal information, including your employment information, income and financial assets. Select Continue.
  4. Add details about the property’s location, its estimated value, how much you’d like to borrow and the property’s main use, such as a primary residence or vacation home. Hit Continue.
  5. View HELOC offers tailored to you and select any you’d like to apply to your application.
  6. Review your application details, upload any necessary documents and submit your application. A home loan officer will take over the application and reach out about the next steps.

To apply over the phone, call 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, hop online to schedule an appointment at a financial center.

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

Bank of America reviews and complaints

Bank of America is accredited with the Better Business Bureau (BBB). As of October 2021, it holds an A+ rating for its customer interaction. The BBB has recorded over 6,495 complaints in the last three years, all of which were addressed by the banking giant. Customers awarded the bank 1.07 stars out of 5 based on 495 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 974 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.

Alternatives to Bank of America HELOCs

There’s a lot to like about Bank of America’s HELOC, but if you’re concerned about their high interest rate maximum, you may consider U.S. Bank, which maxes out at 8.6% and offers flexible lending requirements. Use our handy guide to the best HELOC lenders to start shopping around for the HELOC that’s best for you.

For another HELOC comparison, check out our Bank of America vs. Discover to learn about the banks’ terms and features.

The table below can help you further compare lenders and lender marketplaces by the type of home equity product you’re searching for, state availability and minimum credit score. Select See rates to provide the company with basic property and financial details for personalized rates.

Name Product Loan products offered State availability Min. credit score
SoFi
(NMLS #1121636)
SoFi
Conventional, Home equity, Refinance
Not available in: HI, MO, NM, NY
620
No hidden fees, multiple loan terms, and member discounts available.
Figure
(NMLS #1717824)
Figure
HELOC
Not available in: DE, HI, KY, MD, NY, SC, TX, UT, WV
620
Speedy prequalification, minimal fees and a wide range of loans and terms with this HELOC lender.
LendingTree
(NMLS #1136)
LendingTree
HELOC, Home Equity loans
Available in all states
620
Connect with vetted lenders quickly through this free online marketplace.
Hometap Equity Partners
Hometap Equity Partners
Home equity investment
Only available in: AZ, CA, FL, MA, MD, MI, MN, NC, NJ, NY, OR, PA, VA, WA
600
Sell a portion of your home's equity for cash without monthly payments or hurting your credit score.
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Compare up to 4 providers

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