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Bank Of America HELOC Review 2025


Founded in 1904, Bank of America is the largest HELOC lender in the U.S., with $25.5 billion loaned in the last quarter of 2024.

We love BofA’s home equity line of credit for its extensive draw range (between $10,000 and $1 million, depending on your location) and the fact that BofA covers closing costs, which can be as much as 6% of the loan. In addition, there are rate discounts for setting up autopay and for each $10,000 you withdraw at account opening.

However, borrowers must close at one of the bank’s retail locations.

Bank of America HELOC

  • Loan types

  • Minimum credit score

  • Maximum loan-to-value

  • HELOC draw amount

  • HELOC draw period

  • Repayment period

  • Fees

    No application fees, annual fees or closing costs

  • Availability

    Bank of America offers HELOCs in all 50 states and Washington, D.C.

Pros

  • Available in all 50 states
  • Lower credit score requirement
  • lends up to $1 million
  • No application fees, annual fees or closing costs on HELOC

Cons

  • Doesn’t offer home equity loans
  • Have to complete closing at a branch

What is a HELOC?

Bank of America HELOC review

Bank of America HELOC pros and cons

Pros

  • Rate discount of 0.25% for setting up autopay
  • Discount of 0.10% for every $10,000 withdrawn at closing
  • Wide draw range of between $10,000 and $1 million
  • Bank of America covers closing costs

Cons

  • Early closure fee of $450 if paid off within three years of opening
  • Must go to a bank branch to close
  • Maximum LTV is only 85%, lower than other lenders

Bank of America HELOC rates and terms

Bank of America HELOC requirements  

You can leverage equity to access cash through home equity sharing or a home equity loan.

Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.

Bank of America customer service

How does Bank of America compare?

Figure

  • Loan types

    HELOC, DSCR, cash-out refinance, crypto-backed loan

  • Minimum credit score

  • Maximum loan-to-value

  • HELOC draw amount

  • HELOC draw period

  • Repayment period

    5 years, 10 years, 15 years, 30 years

  • Availability

    Figure HELOCs are available in all states but Hawaii.

Available APRs range from 6.65% to 14.60%, which includes the payment of a higher origination fee in exchange for a reduced interest rate, which is not available to all applicants or in all states. The lowest APRs are only available to the most qualified applicants, depending on credit profile and the state where the property is located, and those who also select ten year loan terms; APRs will be higher for other applicants and those who select longer loan terms. Your actual rate will depend on many factors such as your credit, combined loan-to-value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay a higher origination fee in exchange for a lower rate. Rates change frequently so your exact APR will depend on the date you apply. APRs for home equity lines of credit do not include costs other than interest. You will be responsible for an origination fee of up to 4.99% of your initial draw, depending on the state in which your property is located and your credit profile. You may also be responsible for paying the costs of valuation if an AVM is not available for your property ($180), or an appraisal if your loan amount exceeds $400,000 ($500-$2,000, depending on property type, property value, and state), manual notarization if your county doesn’t permit eNotary ($350), and recording fees ($0 – $315) and recording taxes, which vary by state and county ($0-  $1,400 per one hundred thousand dollars borrowed). Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.

Bank of America and  HELOCs are very different, but the best choice depends on your priorities. 

BofA is a well-established brick-and-mortar bank with thousands of retail locations and a wide range of financial products, including mortgages, checking and savings accounts and credit cards. In contrast, Figure launched in 2018 as an entirely online operation focused exclusively on home equity lines of credit.

Figure prides itself on its speed: It takes only five minutes to get approved and five days to receive funding. (BofA does not disclose information about its closing timeline.) The San Francisco-based fintech company also offers a fully remote closing, while BofA borrowers must close at one of its branches.

But if you’re seeking the traditional advantages of a HELOC, such as flexible draw options and a long interest-only payment period, BofA is the better choice. It offers the standard 10-year draw period, while Figure limits draws to between 2 and 5 years.

Figure HELOCs also have higher minimums and lower maximums — from $15,000 to $400,000 — compared to $10,000 to $1 million with Bank of America.

And, while BofA customers can withdraw as little or as much as they need, Figure requires borrowers to take out the entire line during the initial draw.

Bank of America vs. TD Bank

TD Bank Home Equity Loan

  • Annual Percentage Rate (APR)

    Apply online for personalized rates

  • Loan minimum and maximum

    Minimum: $10,000; Maximum: $500,000 without additional requirements

  • Terms available

  • Credit needed

  • Minimum equity required

TD Bank offers HELOCs up to $6 million, six times the maximum provided by Bank of America, and it approves up to 90% LTV to BofA’s 85%.

But BofA covers closing costs and offers rate discounts for those who enroll in autopay and those who take out $10,000 or more in their initial draw.

However, TD only lends in 15 states, while Bank of America provides loans in all 50 states and Washington, D.C. In addition, BofA doesn’t charge origination, closing or annual fees on HELOCs.

Is a Bank of America HELOC right for me?

Bank of America HELOC FAQs

What is a HELOC?

A home equity line of credit (HELOC) is a revolving line of credit backed by the value of your home. You’ll be able to draw up to the maximum as many times as needed for the 10-year draw period. During this time, you only have to make interest-only payments. Then, after this, you’ll go into repayment and make payments on the principal and interest.

What credit score is required for a Bank of America HELOC?

BofA requires that HELOC applicants have a credit score of at least 660 and a DTI of no more than 43%.

Do I need an appraisal for my Bank of America HELOC?

Yes, BofA requires an appraisal. You may also need to provide your most recent mortgage statements and other paperwork related to the property.

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Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.

Our methodology

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.





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