In life, you often face major home improvement projects,
unexpected costs, education expenses, or the need to consolidate debt.
A home equity line of credit, or HELOC,
could help you achieve your life priorities.
we want to help you understand
how you might put a HELOC to work for you.
A HELOC is a line of credit borrowed against
the available equity of your home.
Your home's equity is the difference between
the appraised value of your home
and your current mortgage balance.
you can generally borrow up to 85%
of the value of your home
MINUS the amount you still owe.
say your home’s appraised value is $200,000.
If you still owe $120,000 on your mortgage,
you’ll subtract that, leaving you with the maximum
home equity line of credit
you could receive as $50,000.
a HELOC is a revolving credit line that you pay down,
and you only pay interest on the portion of the line you use.
With a Bank of America HELOC,
there are no closing costs,
no application fees, no annual fees,
and no fees to use the funds!
Plus, Bank of America offers rate discounts
when you sign up for automatic payments,
based on the funds you initially use when opening the HELOC.
AND there's Preferred Rewards,
which extends benefits to you
as your qualifying Bank of America balances grow.
The interest rate is often lower
than other forms of credit,
and the interest you pay may be tax deductible,
but you should consult a tax advisor.
Most HELOCs have a variable rate,
which means the interest can change over time
based on the Wall Street Journal Prime Rate.
And Bank of America offers you the option
to convert $5,000 or more of your balance to a fixed rate,
so you can take advantage of fixed monthly payments
and protect yourself from rising interest rates.
Continue to use your home equity line of credit
as needed for the duration of your borrowing period,
Once that borrowing period ends,
you’ll continue to pay principal and interest on what you borrowed.
You’ll typically have 20 years for this repayment stage.
If a HELOC sounds right for you,
get started today by giving us a call,
visiting a financial center,
or applying online at bankofamerica.com/HomeEquity.
And be sure to inquire about all the ways
we can assist you with rate discounts.
No matter what large expenses you may face in the future,
a home equity line of credit from Bank of America
could help you achieve your life priorities.