Home equity line of credit annual percentage rate example
|Initial draw amount at closing||$60,000|
|Variable annual percentage rate (APR)||3.925%|
|Index rate (The Wall Street Journal Prime Rate)||3.25%|
Related information for annual percentage rate
Rate information is 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%. APR includes a 0.50% discount (read Rates and discounts for details).
Rates and discounts
The sample variable Annual Percentage Rate (APR) 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.