Bank of America: 2022 Home Equity Review

Bank of America is headquartered in Charlotte, North Carolina and is the second largest bank in the United Statesafter buying Merrill Lynch in 2008.

Bank of America logo

Bank of America

This nationwide lender offers home equity lines of credit, or HELOCs, in all 50 states and the District of Columbia. One of the biggest benefits of a Bank of America HELOC is the ability to convert the loan into a fixed-rate home loan. HELOCs typically have variable interest rates that will go up and down depending on what happens with the economy and interest rate trends in general. This means that right now, when interest rates continue to rise, the possibility of locking in a fixed rate HELOC is a particularly appealing option.

Bank of America: An Overview

Loan types offered


APR range

Starting at 7.40%

Loan amount

$25,000 to $1 million

Credit assessment requirements


Conditions for repayment

10 year drawing period, 20 year repayment

Average time for application

As little as 15 minutes

What we like

Minimum to no fees: There is no application fee or annual fee for a Bank of America home equity line of credit, or HELOC, and the bank also says it takes care of closing costs for its home loans up to $1 million.

Discounts: You can get discounts on your interest if you sign up for various programs at Bank of America. For example, a 0.25% discount is available if you sign up for automatic payment before or during your HELOC application with an eligible Bank of America checking account.

Fixed rate conversion: The option to convert a variable rate HELOC to a fixed rate loan is ideal in today’s rising interest rate environment. Not all lenders offer this type of HELOC, making Bank of America a good candidate to consider, then Federal Reserve is expected to raise interest rates once more before the end of the year.

What we don’t like

Preference for Bank of America customers: You are not eligible for all available discounts if you are not a Bank of America customer. However, customers get additional discounts, such as receiving up to 0.375% off your interest rate, depending on what kind of account you have.

Fee for early closing: Although one of the biggest benefits of a Bank of America HELOC is the minimal fees, if you close your account within 36 for any reason, you will be charged a $450 fee and must repay any third-party closing cost fees. which the bank has paid on your behalf.

Higher rates for fixed loans: If you decide to convert your HELOC to a fixed rate loan, keep in mind that your new rate will be slightly higher than your original variable rate. So even though you don’t have to pay a fee to do the conversion, your interest rate goes up a bit. However, your interest rate may remain lower in the long term compared to what your variable rate could go up to.

Home loan options

Bank of America originates mortgages and refinances as well as HELOCs, but does not currently have a home loan option. But because the bank allows you to convert HELOCs into fixed-rate loans, it still offers homeowners a homeowner option with predictable monthly payments, which could be ideal in the near future as experts expect interest rates to rise amid persistent inflation and a Possibly. recession.


One of the advantages of Bank of America is minimal or no fees. You are not required to pay an application fee or closing costs, and there is no annual fee to maintain your HELOC account, which is a common fee that other lenders may charge.

If you close your account within 36 months of opening, you must pay a $450 early closure fee as well as repay any other third-party fees the bank paid on your behalf during the approval process, such as registration fees or taxes. However, if you live in Maryland, the fee is waived if your maximum credit limit is less than $25,000.

How to qualify

Because Bank of America does not disclose its minimum credit score requirements, it is advisable for potential customers to review their credit to ensure that their credit scores are very good to exceptional to qualify for a low interest rate. In general, most lenders prefer a credit score of 700 or higher, but some lenders, such as Bank of America, will accept a lower score in the mid-600 range — but expect to pay higher interest rates.

You’ll need the standard paperwork to prove you have sufficient, verifiable income—including your most recent W-2 form, tax returns, and pay stubs. You must also provide documentation for your existing mortgage and whether or not you have current homeowner’s insurance.

Get started

You can apply online, in person or over the phone for a HELOC with Bank of America. But to close your loan, you will have to go in person to one of its brick and mortar locations. Once your loan is closed, you can manage all your documents throughout the process using the bank’s online portal.

Customer service

You can apply for a HELOC online, and the process should take as little as 15 minutes, according to Bank of America. You also have the option of scheduling an appointment via its website. Most live phone support is available Monday through Friday, 8:00 a.m. to 9:00 p.m. ET, although some lines are also open on Saturday and Sunday. Check the website for details.

Live phone support:

  • Speak with a Lending Specialist: 800-763-4820
  • Applications for new home equity: 800-779-3894
  • Existing HELOC clients: 800-934-5626
  • If for some reason you are unable to make a payment: 800-451-6362


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