Homeowners are eligible for many financial benefits, particularly when it comes to applying for financing. Home equity loans and home equity lines of credit (HELOCs) offer great ways for homeowners to draw on the value of their home. While home equity loans offer a lump sum of money up front, home equity lines of credit allow homeowners to tap into their home’s equity whenever they need it.
One of the most popular home equity loan products can be secured through Bank of America. In this guide, we’ll look at the benefits, requirements, and limitations of the Bank of America HELOC, and offer additional options for interested borrowers.
Bank of America Home Equity Line of Credit Review
The Home Equity Line of Credit (HELOC) available from Bank of America offers a variable APR that’s eligible for a variety of rate discounts. Borrowers can receive up to .25% off their rate for setting up automatic payments, 1.5% off for initial withdrawals, and .375% off for existing Preferred Rewards customers.
Other benefits include:
- No application fees
- No closing costs
- No annual fees
- Flexible access to funds
- Simple online application process
- Mobile and online banking options
To qualify for a Bank of America HELOC, you must have:
- Equity in your home
- Good credit score
- Solid employment history
Bank of America HELOCs will allow you access to up to 85% of your home’s current equity.
Alternative HELOC Options
While Bank of America offers a great HELOC product, there might be other products better suited to your circumstances. Whether you’re using your funds to renovate, pay bills, or invest in a rental property, here are five alternative options to consider when looking for a HELOC.
1. US Bank
US Bank provides great HELOC options with both variable and fixed-rate options. Depending on your home’s equity, borrowing amounts are between $15,000 and $750,000. HELOCs are available to residents in all 50 states and alternative credit is considered when applying. In addition, there are no closing costs, no application fees, no origination fees, and cash-out refinancing terms.
2. PenFed Credit Union
This online credit union is available to members, though it’s easier than ever to apply for membership online. PenFed offers great HELOC products including a 5/5 HELOC that allows borrowers to lock in a low-interest rate for five years. PenFed offers high percentages of home equity that borrowers can apply for, although this percentage is capped at 80% for applicants in Texas.
CitiMortgage provides a great online process for applying for a HELOC and offers a variety of discounts to existing members. Rate deductions are also available for applicants who apply for auto payments. No closing costs or application fees are charged, and CitiMortgage offers many different ways to access your HELOC funds. This product is not available in Alaska and also requires an initial withdrawal of $25,000.
4. Chase Bank
If you’re already a member of Chase Bank, it can be worthwhile to look into their impressive HELOC offerings. Applicants will save .25% off their interest rate for having a Chase checking account and .5% with a premier platinum account. An additional low introductory is offered when you withdraw $30,000 or more up front. Chase does charge an annual fee of $50, with a $50 origination fee. HELOCs are unavailable in Alaska, Hawaii, and South Carolina.
Borrowers looking for fixed-rate HELOCs should explore PNC’s home equity line of credit options. Offered in all 50 states, PNC has a variety of different HELOC products. HELOCs through PNC have two fixed-rate lock options available with terms ranging from five to 30 years. On the downside, some HELOCs require an origination fee and auto payments are required to lock in advertised rates.
If you’re a current homeowner looking for access to a revolving line of credit, applying for a HELOC is a great option. Current Bank of America customers may find better introductory rates when applying for this HELOC, but the other alternative financial options should also be considered.
If you’re thinking of using your HELOC to fund an investment project, you’ll want to team up with a qualified real estate agent. Local agents can not only help you find the best investment properties, but they can also offer financial advice and set you up with local lenders and loan officers.
Don’t have an agent? Get started by getting in touch with a Clever Partner Agent for more information.