During the Variable-Rate Introductory Period
You are invited to apply for a Home Equity Line of Credit (HELOC). Your receipt of this material does not mean you have been pre-qualified or pre-approved for any product or service we offer. This is not a commitment to lend; you must submit additional information for review and approval. Sample Rate(s) and APR(s) are for illustrative purposes only and are subject to change without notice. Offer available for new applications submitted between 10/01/15 and 03/31/16 for qualified borrowers with approved line sizes of $100,000 or greater and the 12-month Introductory Period begins on the date the HELOC account is opened.
The Variable Introductory Rate is based upon The Wall Street Journal Prime Rate (“Prime”) (3.5% on 02/13/2016) minus 1.26%. Prime may change at any time and is subject to change without notice. If Prime increases or decreases during the Introductory Period, the Introductory Rate and minimum required payment will correspondingly change. The Variable-Rate Introductory Offer is applicable to all funds withdrawn from the line of credit during the 12-month Introductory Period beginning from the date the HELOC account is opened. Line increases to existing HELOCs are not eligible for the Variable-Rate Introductory Offer. No customer or other discounts (such as the automatic payment or initial draw discounts, described below) are available during the Variable-Rate Introductory Period.
After the Variable-Rate Introductory Period
After the Variable-Rate Introductory Period ends any and all remaining balances will automatically convert to the APR per the terms of the HELOC agreement, which also applies to all subsequent advances. Sample variable Annual Percentage Rate (APR) is 3.780% (as of 02/13/2016) assumes a new $100,000 HELOC in second lien position, with a combined loan-to-value (CLTV) ratio of up to 70% on a 1- to 4-unit owner-occupied primary residence, and a borrower with excellent credit. Sample APR includes a 0.25% discount for maintaining automatic payment from a Bank of America account, and a 0.60% discount based on an assumed $60,000 draw amount being initially drawn at account opening and maintained for at least the first 3 full billing cycles. Available rate, margin and payment amount may vary based on initial draw, property value, line amount and other factors. Speak to a mortgage loan officer to learn more. For new applications, the term of a HELOC is 30 years: 10-year draw period, 20-year repayment period. During both the draw period and the repayment period, your 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. APR is based on The Wall Street Journal Prime Rate (3.5% on 02/13/2016) plus a margin, and will vary with the Prime Rate, but will not exceed 24%. Rate(s) and APR(s) are subject to change without notice.
Property insurance is always required and flood insurance is required where necessary. To obtain a HELOC from Bank of America, a security interest will be taken on borrower’s 1- to 4-unit owner-occupied primary residence as collateral. Certain property types are not eligible collateral. The minimum line amount is $25,000. The maximum line amount for primary residences is $1,000,000 and $500,000 for second/vacation homes. Restrictions apply for larger line amounts, ask for details. To obtain a line amount greater than $500,000 for primary residences (or greater than $100,000 for second/vacation homes), borrowers at application must have combined balances held and posted with Bank of America and/or Merrill Lynch that total greater than or equal to $20,000. Some investment assets may not be valid for the combined balance total. Maximum CLTV ratios are lower for larger line amounts. Certain asset verification requirements and asset minimums must be met for lines of credit greater than $500,000. 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 (to cover certain origination costs and fees absorbed by Bank of America rather than assessed to you at closing), 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 $398.10 ($25,000 line) and $16,885.10 ($1,000,000 line), and in New York $1,249.60 ($25,000 line) and $33,974.10 ($1,000,000 line).
Additional Information for Texas: Bank pays all closing costs on homestead property in Texas subject to Section 50(a)(6) of the Texas Constitution. Bank of America cannot use a customer’s home equity funds to pay (in part or in full) Bank of America non-homestead debt at account opening. Early Closure Fee does not apply. The minimum advance amount on the HELOC is $4,000, maximum CLTV is 80% and maximum LTV is 50%. Access to the HELOC account using an ATM card or other access cards is not allowed.