Home Equity Assumptions

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Home Equity Assumptions

Bank of America Private Bank, and Merrill clients should contact your Private Client Advisor, Private Client Manager, Merrill Advisor or client team for help and available pricing and guidelines, which are not reflected in the calculator results and/or loan assumptions below, and are not available when applying online.

Bank of America home equity lines of credit (HELOCs) are available in all 50 United States and the District of Columbia.

You are invited to apply for a Home Equity Line of Credit (HELOC). This is not a commitment to lend; you must submit additional information for review and approval. Rate(s) and Annual Percentage Rate(s) ("APR(s)") are for illustrative purposes only and are subject to change without notice.

Assumptions used for online rates and payments

Sample APR assumes a new $100,000 HELOC in second lien position with a combined loan-to-value (CLTV) ratio of up to 70% on an owner-occupied single family detached primary residence and a borrower with excellent credit.
Sample APR includes the following discounts:

(1) an "auto pay" discount of 0.25% for setting up automatic payment (at or prior to HELOC account opening) and maintaining such automatic payments from an eligible Bank of America deposit account

(2) an "initial draw" discount of {{ percentage rates.product.udeDiscountRate }} for drawing a minimum of $60,000 at HELOC account opening and maintaining a minimum balance of $60,000 for at least the first 3 full billing cycles (less any required principal payments)

(3) a "relationship" discount of {{ params.preferredRewardsRateDiscount }}, which assumes eligibility for the Preferred Rewards {{ params.preferredType }} at the time of application
Sample APR may vary based on initial draw, actual CLTV, property value, property location, line amount and other factors.

Important information about our Home Equity Line of Credit

Variable APR is based on The Wall Street Journal Prime Rate ("Prime") plus a margin, and will vary with Prime. Your APR will not exceed 24% or go below 1.99% at any time during the term of your account. Prime may change at any time and is subject to change without notice.
The term of a HELOC is 30 years: 10-year draw period, 20-year repayment period.
Property insurance is always required and flood insurance is required where necessary.
Certain property types are not eligible collateral.
The variable minimum monthly payment will be an amount sufficient to repay the outstanding balance in principal and interest payments over the remaining term at the applicable APR, subject to a minimum payment of at least $100.
The minimum line amount is $25,000. The maximum line amount is $500,000 for primary residences.
Bank of America pays all closing costs on lines up to and including $500,000. If you terminate your account within 36 months of opening it, you will be required to pay an Early Closure Fee consisting of (1) a $450 base fee, plus (2) any mortgage and government taxes, recording fees, and any closing agent or attorney fees Bank of America paid on your behalf. The combined amount of all third party fees for a line of credit generally total between $453.35 ($25,000 line) and $14,071.35 ($500,000 line), and in New York $776.35 ($25,000 line) and $20,345.35 ($500,000 line). The Early Closure Fee does not apply for accounts with a maximum line amount less than $25,000 or for properties located in Maryland.

Additional Information for HELOCs in Texas subject to Section 50(a)(6) of the Texas Constitution: Early Closure Fee does not apply. The minimum advance amount on the HELOC is $4,000 and maximum CLTV is 70%. Access to the HELOC account using an ATM card or other access cards is not allowed.

Rate and Payment Example

Based on loan assumptions used for online rates and payments

Line amount

$100,000

Initial withdrawal amount at account opening

$60,000

Variable annual percentage rate (APR)

Includes the following discounts:

Auto payment discount

Initial Draw discount

Sample monthly payment amount
(Based on $60,000 draw only)

Effective date
(All rates and terms subject to change without notice.)

Rate and payment information are for {{ params.state }}. The monthly payment example assumes partial utilization of the line with variable-rate monthly minimum payments. For other rate and monthly payment estimates based on different assumed initial draw amounts, please contact us.

Additional information for Texas collateral only

Home Equity
LINE OF CREDIT
Primary Residence
Texas (a)(6) Lien (homestead property)

Home Equity
LINE OF CREDIT
2nd Home
Not Texas (a)(6) Lien (non-homestead property)

Product Information

A line of credit on a primary residence homestead property in Texas for the sole purpose of obtaining cash (including debt consolidation) or refinancing a prior Texas (a)(6) lien. These liens are subject to Section 50(a)(6) of the Texas Constitution.

A line of credit in Texas for the sole purpose of refinancing (with no cash-out) an existing lien that is not a Texas (a)(6) lien under Section 50(a)(6) of the Texas Constitution. Second homes are not subject to Texas (a)(6) requirements.

Combined loan to value (CLTV)

Maximum CLTV is 70%.

Closing costs

Bank pays all closing costs.

Note: Bank of America cannot use a client's home equity funds to pay (in part or in full) Bank of America non-homestead debt at closing.

Bank pays all closing costs.

Early closure fee

Early closure fee is not allowed.

An early closure fee will be assessed if account is terminated within 36 months of opening. Early closure fee is $450 plus any closing agent or attorney fees Bank of America paid on your behalf. The Early Closure Fee does not apply for accounts with a maximum line amount less than $25,000 or for properties located in Maryland.

Advance (draw) requirement

Minimum draw is $4,000.

There is no minimum draw.

Home Equity LINE OF CREDIT Primary Residence Texas (a)(6) Lien (homestead property)

Product Information: A line of credit on a primary residence homestead property in Texas for the sole purpose of obtaining cash (including debt consolidation) or refinancing a prior Texas (a)(6) lien. These liens are subject to Section 50(a)(6) of the Texas Constitution.

Combined loan to value (CLTV): Maximum CLTV is 70%.

Closing costs: Bank pays all closing costs.

Note: Bank of America cannot use a client's home equity funds to pay (in part or in full) Bank of America non-homestead debt at closing.

Early closure fee: Early closure fee is not allowed.

Advance (draw) requirement: Minimum draw is $4,000.

Home Equity LINE OF CREDIT 2nd Home Not Texas (a)(6) Lien (non-homestead property)

Product Information: A line of credit in Texas for the sole purpose of refinancing (with no cash-out) an existing lien that is not a Texas (a)(6) lien under Section 50(a)(6) of the Texas Constitution. Second homes are not subject to Texas (a)(6) requirements.

Combined loan to value (CLTV): Maximum CLTV is 70%.

Closing costs: Bank pays all closing costs.

Early closure fee: An early closure fee will be assessed if account is terminated within 36 months of opening. Early closure fee is $450 plus any closing agent or attorney fees Bank of America paid on your behalf. The Early Closure Fee does not apply for accounts with a maximum line amount less than $25,000 or for properties located in Maryland.

Advance (draw) requirement: There is no minimum draw.

Home equity line of credit (HELOC) Fixed-Rate Loan Option

Fixed-Rate Loan Option at account opening: The minimum line of credit amount withdrawn at account opening that can be converted to a fixed rate is $5,000 and the maximum that can be converted is 90% of the maximum line amount. The minimum term is 1 year, and the maximum loan term will not exceed the account maturity date.
Fixed-Rate Loan Option during loan term: You may convert all or a portion of your outstanding variable-rate balance into a Fixed-Rate Loan Option resulting in a fixed rate and fixed payment. The minimum withdrawal from an existing HELOC that can be converted is $5,000. The minimum term is 1 year, and the maximum loan term will not exceed the account maturity date.
No more than three Fixed-Rate Loan Options may be open at one time.
There is no fee to convert to the Fixed-Rate Loan Option.
Rates for the Fixed-Rate Loan Option are typically higher than variable rates on the HELOC account.
Minimum payment due on a Fixed-Rate Loan Option includes principal and interest in fixed monthly payments.
As the fixed-rate balance is paid down during the draw period, funds are replenished and available for use at the variable rate.

Home equity line of credit - how to access your funds

You may access funds in your home equity line of credit account by:

Writing home equity line convenience checks
Going in person to a Bank of America financial center
Telephone
Online Banking
Using your Bank of America ATM card at a Bank of America ATM
(Some states do not allow access to a home equity line of credit account using an ATM card or other access cards.)

Tax deductibility

Please consult your tax advisor regarding interest deductibility.

Debt consolidation

The relative benefits of a loan for debt consolidation depend on your individual circumstances. For example, you may realize interest payment savings by making monthly payments towards the new, lower interest rate loan in an amount equal to or greater than what was previously paid towards the higher rate debt(s) being consolidated.

[Texas (a)(6) liens only: A client's non-homestead debt with Bank of America cannot be paid at closing by Bank of America using funds from a Bank of America home equity account. Non-homestead debt includes, but is not limited to, credit card, auto, boat, recreational vehicle or unsecured lines or loans.]