The number of years it will take to pay off a loan. The loan term is used to determine the payment amount, repayment schedule and total interest paid over the life of the loan.
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If you need a specific amount of money right away for large expenses and want a predictable monthly payment, a home equity loan could be the right option for you.
What is a home equity loan?
A home equity loan is secured by your home and enables you to access your available equity in the form of a single payout and a fixed interest rate with fixed monthly payments. Unlike a home equity line of credit (HELOC), your home equity loan proceeds are paid out as a one-time lump sum, and you can't borrow funds on the loan again, even if you repay them.
Home equity loans could be a good way to pay for home improvements or other large expenses, or to consolidate higher-interest rate debt (such as credit cards).Footnote 1
Want to view home equity loan features and HELOC features side by side? Compare a home equity loan vs. home equity line of credit
Note: A home equity loan is not available as a first mortgage or lien, and is not available on Glossary Term: investment or rental homes. If you need a fixed-rate loan to pay off your current mortgage or do not have a first mortgage, learn about mortgage refinancing.
You could get a reduction of up to 0.25% off your fixed interest rate:
An additional discount is available for having an eligible relationship status with Bank of America at the time of home equity application. (Contact us for details.)
You can get an idea of rates for the amount you’re thinking about borrowing by using our home equity loan calculator.