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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.

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 a single-family detached primary residence and a borrower with excellent credit.

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 generally $25,000, but lines as low as $15,000 are available in certain locations. The maximum line amount is generally $1,000,000, but may be $500,000 in certain locations. Bank of America pays all closing costs on lines up to and including $1,000,000.

If you terminate your account within 36 months of opening it, you will be required to pay an Early Closure fee of $450. The Early Closure Fee does not apply for accounts with a maximum line amount less than $25,000 or for properties located in Maryland. See section below for Additional Information for HELOCs in Texas.

  • This invitation to apply is available for new applications submitted between 5/1/2024-8/31/2024.
  • APR During the Introductory Period: The variable Introductory APR is based on The Wall Street Journal Prime Rate ("Prime") minus 1.01%. Prime may change at any time and is subject to change without notice. If Prime increases or decreases during the Introductory Period, the variable Introductory APR and minimum required payment will correspondingly change. The 6-month Introductory Period begins on the date of account opening. No customer or other discounts are available during the Introductory Period.
  • APR After the Introductory Period: After the Introductory Period ends, any and all remaining balances will automatically convert to the variable APR per the terms of the HELOC agreement. The variable APR is based on 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. APR may vary based on initial draw, actual CLTV, property value, property location, line amount and other factors.
  • 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; and

    (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

Based on loan and discount assumptions used for online rates and payments

Line amount


Initial withdrawal amount at account opening


Variable annual percentage rate (APR)

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Includes the following discounts:

Auto payment discount

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Initial Draw discount

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

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

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The Home Equity Line of Credit has a variable rate that may increase or decrease based on adjustments to the Wall Street Journal Prime Rate, which could change multiple times during the life of the loan.

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.

Texas Homestead Property is subject to the requirements of Article 16, Section 50(a)(6) of the Texas Constitution. Early Closure Fee does not apply. The minimum advance is $4,000. Maximum CLTV is typically 80% and maximum LTV is typically 80%. Access to the HELOC account using an ATM card or other access cards is not allowed. Bank pays all closing costs. 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 HELOC. Non-homestead debt includes, but is not limited to, credit card, auto, boat, recreational vehicle or unsecured lines or loans.

Texas Non-Homestead Property: Early Closure Fee applies. Bank pays all closing costs on lines up to and including $1,000,000. No minimum draw requirement.

  • 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.

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

  • Online Banking and Mobile App
  • Going in person to a Bank of America financial center
  • Telephone
  • Using your access 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.)
  • Writing home equity line convenience checks

Please consult your tax advisor regarding interest deductibility.

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.