What is Bank Of America HELOC? How does it work? How can I apply? Do not fret. Scroll to the end of this article to discover legit answers. Bank Of America HELOC, also known as Bank Of America Home Equity Line Of Credit is a loan provided by the Bank Of America to give borrowers a maximum amount of money. However, this is within a certain period. And the collateral for it is your house. In other words, Bank Of America HELOC is a line of credit that provides an orbiting credit line used for huge expenses.
To apply for a Bank Of America HELOC, you are allowed to borrow against accessible equity with collateral. However, you need to know that the collateral with be your home. You will also need to pay interest on the part of the line you make use of. Moreover, applying for it is very easy. It is also very fast. In order words, you will be getting responses and results in a few hours or days. In addition, the Bank Of America HELOC has a low-interest rate, unlike other loan types.
How Does It Work?
With the Bank Of America HELOC, you can borrow available equity. However, you will be using your home as collateral for a line of credit. Moreover, as you repay this loan, the amount of the credit available will be repaid just like a credit card.
You can also borrow against it. This is if you want it again. Moreover, you can also borrow as much as you want throughout the draw period. In other words, you can borrow whatever amount you want. At the end of your draw period, your repayment period will start. This is typically 20 years. And your draw period is 10 years.
Am I Eligible for Bank Of America HELOC?
Just like applying for a credit card, you need to be eligible before you apply for it, and applying for the Bank Of America HELOC is not an exception. First, you will need to have a credit score to apply for the Bank Of America Home Equity Line Of Credit.
In addition, the Bank of America does not state the required credit score to have before you can apply for its HELOC. So, if you have a credit score, you can apply for a loan. However, according to reports, the lenders will need the applicants to have a credit score in the mid-600 scale. You must also have a strong history of paying bills on time.
In other words, you must be able to provide evidence that you pay all of your bills on time and you do not have a default. Furthermore, you need to have a debt-to-income ratio below 50% and Equity of at least 15-20%. You must also have a job and evidence of income flow.
To settle your rate, the Bank of America will begin with an index rate. Next, they will add a markup. However, this markup is based on your credit profile. For instance, if you have a high credit score, your markup will be lower and vice versa. Plus, request to view the amount before you sign off on the Bank Of America HELOC.
How To Apply for the Bank Of America HELOC
Applying for the Bank Of America HELOC is very easy. Moreover, complicated steps are not required. Luckily for you, in this segment of this article, I will be providing you with simple steps to adhere to if you want to successfully apply for the Bank Of America HELOC. They include:
- Connect to the internet.
- Open your web browser.
- Visit the Bank of America Official Website.
- Once you wish its official website, you will see its homepage.
- Click on the Get Started option.
- You will need to fill out a form on the nest page by providing your personal information and property information.
- Enter your Property location, the use of the property, estimated property value, and line of credit amount.
- Next, enter how you want to make use of the funds, and confirm whether or not you are a Bank of America customer.
Click on Continue when you are done. You will be taken to the next page. Follow the steps on the next page and after you have filled out the form, submit it. Note that you need to go through the form to avoid and correct mistakes. It will take 2 to 4 weeks to process your application.