Home equity line of credit annual percentage rate and monthly payment example
|Initial draw amount at closing||$60,000|
|Variable annual percentage rate (APR)||3.875%|
|Index rate (The Wall Street Journal Prime Rate)||3.25%|
|Sample monthly payment amount||$282.00||Payment based on $60,000 draw only. For other monthly payment estimates based on different assumed initial draw amounts, please contact us.|
Related information for annual percentage rate
Rate and payment information are for CA. The variable Annual Percentage Rate (APR) for a new home equity line is based on The Wall Street Journal Prime Rate plus a margin and will vary with the Prime Rate but will not exceed 24%. The monthly payment example assumes partial utilization of the line with variable-rate monthly minimum payments. APR includes a 0.50% discount (read Rates and discounts for details).
Rates and discounts
The sample variable Annual Percentage Rate (APR) and monthly payment amount shown are for illustrative purposes only and assume a new home equity line of credit 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. The minimum line amount is $25,000 and the term of the loan is 30 years: 10-year draw period and 20-year repayment period. Glossary Term: Variable-rate monthly minimum payments include principal plus interest. APR is based on The Wall Street Journal Prime Rate plus a margin and will vary with the Prime Rate but will not exceed 24%. The sample APR includes a 0.25% discount for maintaining automatic payment from a Bank of America account, and a 0.25% discount based on the above specified draw amount being initially drawn at closing and maintained for at least the first 3 billing cycles (except to the extent any reduction in the balance is attributable to required principal payments). Rates and APRs subject to change without notice. Property insurance is always required and flood insurance is required where necessary.