The number of percentage points the lender adds to or subtracts from the index rate to determine the interest rate adjustments. The margin is constant throughout the life of the mortgage and is specified in the promissory note.
The Variable Annual Percentage Rate (APR) for home equity lines of credit is based on an index such as The Wall Street Journal Prime Rate plus a Margin popup and will vary with changes in the Prime Rate. Your APR will not exceed 24% or go below 1.99% at any time during the term of your account. Please refer to the terms of your home equity line of credit agreement for information regarding your index and margin, and the method used to calculate your APR.
Effective xxxx | The Wall Street Journal Prime Rate is xxxx |
Your account must be in good standing to be eligible. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Texas note: Home equity lines secured by a primary residence homestead in Texas, subject to Article 16, Section 50(a)(6) of the Texas Constitution, are not eligible for a line increase, but borrowers may apply for a new home equity line of credit with a higher credit limit, after the previous home equity account has been open for at least 12 months.
Depending on the circumstances, it will likely be necessary to close your current line and open a new home equity line of credit with a new account number. In any event, a modification agreement and/or other documentation may be required, and new terms and fees may apply.
The minimum line increase is $10,000. The maximum line size is $1,000,000. Maximum Combined Loan to Value (CLTV) ratios are lower for larger line amounts. Certain eligibility requirements and restrictions apply for line amounts greater than $500,000; ask us for details.
All balances under your increased line may be subject to the rate described in the terms of your new credit line agreement. Any promotional rate offers previously applied to balances may no longer be valid. Read the Closing costs for line increase section for additional information.
Home equity line of credit accounts with less than 6 months remaining in the draw period are not eligible to apply for a line increase. Additionally, HELOCs that are secured by a second/vacation home are not eligible for a line increase.
The approved line increase amount is available after a three-business-day rescission period following closing. Offer is contingent on Bank of America maintaining a valid first or second lien on the property. Property insurance is always required and flood insurance is required where necessary.
Your variable-rate monthly minimum payment includes principal and interest ($100 minimum payment required) which may be different from your current home equity line of credit payment structure. Payments are calculated based on your outstanding balance. Monthly payments may fluctuate with interest rate and principal balance changes.
The maximum term is 30 years—a 10-year draw period followed by a 20-year repayment period. During the draw period, you use your funds while making payments that include principal and interest. Once the repayment period begins, you’re no longer able to obtain advances of funds, and you continue repayment of the outstanding balance in principal and interest payments for up to 20 years.
Please note: your decision may take up to 4-6 weeks and may require additional documentation.
Bank of America pays all HELOC 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 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 $456.10 ($25,000 line) and $23,879.10 ($1,000,000 line), and in New York $778.60 ($25,000 line) and $34,413.10 ($1,000,000 line).
The number of percentage points the lender adds to or subtracts from the index rate to determine the interest rate adjustments. The margin is constant throughout the life of the mortgage and is specified in the promissory note.