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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.
| Name | Bank of America |
|---|---|
| Description | Get started with the Digital Mortgage Experience |
| Minimum credit | 620 |
| Origination fee | Varies |
| Other fees |
Bank of America takes care of the closing costs on lines up to $1 million and waives application or annual fees. It doesn’t charge a fee to convert a variable-rate balance to a fixed-rate, either.
But if you close your account within 36 months, you’ll have to pay a $450 base fee, along with any mortgage and government taxes, recording fees and closing costs Bank of America paid on your behalf. The site says the average fee is between $456.10 for a $25,000 line — or $778.60 in New York — and $23,897.10 for a $1 million line. Because of higher taxes, New Yorkers can expect to pay between $778.60 and $34,413.10 in fees for the same credit lines. |
Eligible borrowers can open a HELOC between $15,000 and $1 million on a primary residence, and $500,000 on a secondary residence. Most major banks cap their HELOCs at $500,000.
Set up automatic monthly payments from your Bank of America checking or savings account and you’ll earn a discount of 0.25%. The bank also offers an initial draw discount of 0.1% for every $10,000 withdrawn, up to a maximum discount of 1.5%. Finally, Preferred Rewards members score a discount of 0.125% for Gold tier, 0.25% for Platinum or 0.375% for Platinum Honors.
With Bank of America, you can typically borrow up to 85% of your home’s equity — which is more than many traditional lenders.
The bank is tight-lipped on its eligibility requirements, though it does say borrowers need a loan-to-value ratio of 80% or less.
The site suggests the best rates are reserved for Preferred Rewards customers who set up automatic payments from their Bank of America checking account.
Along with its wide HELOC range and interest rate discounts, opening a line of credit with this lender also has these benefits:
The easiest way to apply is online. These are the steps:
To apply over the phone, call 800-779-3894 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.
The application will ask for the following
Make the most of your HELOC with these tips:
Convert to a fixed-rate. To switch to steady monthly payments, convert all or part of your variable-rate balance to a fixed-rate during the draw period. The minimum amount that can be converted is $5,000.
Access your credit. These are your options:
Contact customer service. You can reach the team by:
Sunday from 8 a.m. to 5 p.m. ET.
But if you think you may close your account early, compare other lenders to avoid the hefty fee.
