Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.
Bank of America Home Equity Line of Credit Review
By Michelle Lambright Black MONEY RESEARCH COLLECTIVE
A Bank of America home equity line of credit (HELOC) could be a solid financing solution for certain homeowners. A HELOC from Bank of America can give you a flexible credit line that you can access again and again—typically at a more attractive APR than you’d find with a high-interest credit card.
Read on for important information about home equity lines of credit available through Bank of America. From the benefits and drawbacks of this type of financing to the bank’s customer service reputation and more, you’ll uncover key details below that can help you decide whether home equity financing from Bank of America could make sense for you.
Table of Contents
- Bank of America Home Equity Overview
- Bank of America’s Home Equity Services
- Bank of America’s Credentials
- Bank of America’s Accessibility
- Bank of America’s Customer Satisfaction
- Frequently Asked Questions
Bank Of America Home Equity Overview
- No application fees
- No closing costs
- No annual fee
- Multiple APR discounts available
- Interest is potentially tax deductible if you use funds for home improvement projects
- Early termination fee for closing account before three years
- Minimum line of credit is $25,000 (online applications)
- Lower APRs may be available elsewhere
- Must have enough available equity in home to qualify
Bank of America is one of the most recognizable names in the U.S. banking industry. The financial institution traces its roots back 240 years. Today the bank serves individuals and businesses around the globe through banking, investment, and other financial services.
One financial service that Bank of America offers to qualified customers is home equity financing—specifically home equity lines of credit or HELOCs. With annual percentage rates starting as low as 6.3% in some parts of the country and three discount opportunities available, a HELOC from Bank of America could be an affordable financing solution for the right borrower.
Bank Of America’s Home Equity Services
Although multiple types of home equity financing exist, Bank of America doesn’t offer them all. Here’s a look at the different types of home equity financing services available to qualified applicants through the financial institution.
What it offers
- Home Equity Line of Credit (HELOC): Bank of America offers qualified homeowners the opportunity to use their home equity to secure a home equity line of credit. The variable APR the bank offers you on a HELOC may differ depending on your state of residence. However, you can check rates, estimate your payments, and apply online.There are also several rate discount opportunities available with Bank of America HELOCs. You might qualify for a lower rate if you sign up for automatic payments, make an initial draw of $10,000 or more, and if you’re a Bank of America Preferred Rewards member.The bank charges no fees to apply for or close on a variable-rate HELOC. And the revolving financing option features no annual fee either.If you qualify for a HELOC, the typical draw period (aka borrowing window) lasts for 10 years before the repayment period begins. During the draw period, you’ll be able to access funds from your HELOC as long as the account remains open, in good standing, and has available credit. But you could face a $450 early closure fee if you don’t leave the account open for at least three years.
- Cash Out Refinance: Another home equity financing option available to borrowers through Bank of America is the cash-out refinance. If you have enough equity in your home, you might be able to pay off the outstanding balance on your existing mortgage and get cash back at closing by refinancing through the bank.Plus, if your original mortgage charges a high interest rate, you might have an opportunity to save money on a new home mortgage. Even if your mortgage balance stays the same, a lower APR might help you save on both monthly payments and overall interest fees. Just be sure to crunch the numbers first to make sure the math works in your favor.Bank of America offers both adjustable and fixed-rate refinance loans (aka 30-year and 15-year mortgages). Your mortgage rates may vary based on your credit score, loan term, loan amount, loan-to-value ratio, autopay participation, and other factors.
What it doesn’t offer
At the time of writing, Bank of America does not offer home equity loans to borrowers. So if you want an installment loan that offers a lump sum of cash or a fixed interest rate, you may want to shop around to find the best home equity loans for your situation.
Like HELOCs, home equity loans can be a good financing solution for borrowers who want to pay for expensive home improvement projects or even for debt consolidation. But it’s important to weigh the pros and cons carefully since you’ll be putting your house on the line as collateral with all of these types of loans.
Bank Of America’s Credentials
It’s important to work with reputable, trustworthy lenders when you’re seeking financing—home equity lines of credit or otherwise. Here are some of the key details we found when we researched Bank of America.
Licenses and registrations
In the United States, national banks are regulated by the Office of the Comptroller of the Currency. You can find Bank of America on the agency’s active list of National Banks and Federal Branches here.
The Federal Deposit Insurance Corporation (FDIC) also insures any deposits you make with Bank of America (e.g., checking accounts, savings accounts, money market accounts, etc.). Insurance limits go up to $250,000 per person, per insured bank (for each account type).
Awards
Bank of America has been the recipient of many awards over its long history, including the following recent honors.
- Best Bank in the United States (by Global Finance)
- America’s Best Consumer Loyalty Programs of 2022 (Newsweek)
- Best Digital Bank (The Digital Banker)
Regulatory or legal actions
Like several other major banks in the United States, Bank of America is no stranger to regulatory and legal events. Below are some recent actions that government regulators have taken against the financial institution.
- $125 Million Penalty from the Office of the Comptroller of the Currency (OCC). In 2022, the OCC assessed a $125 million penalty against Bank of America for violating the law with “unsafe or unsound practices related to the bank’s administration or a prepaid card program to distribute unemployment insurance and other public benefit payments.”
- Federal Trade Commission (FTC) filing. In December 2021, the FTC joined the Consumer Financial Protection Bureau (CFPB), the U.S. Department of Justice and the Board of the Federal Reserve in an amicus brief filing. The brief—filed in the case John Fralish v. Bank of America with the United States Court of Appeals for the Seventh Circuit—alleges that Bank of America violated the Equal Credit Opportunity Act by seeking to take away protections from consumers. The case is still pending as of this writing.
Bank Of America’s Accessibility
Availability
Bank of America services around 67 million customers in the U.S. and abroad. The bank provides financial service and customer support for its customers through approximately 4,000 retail financial centers, 16,000 ATMs, and award-winning digital banking tools.
According to Bank of America’s online map of financial centers and ATMs, the financial institution has brick-and-mortar locations in 37 states and the District of Columbia. So if you live in any of the following states, you may not have the option to visit a branch in person.
- Alabama
- Alaska
- Hawaii
- Louisiana
- Mississippi
- Montana
- Nebraska
- North Dakota
- South Dakota
- Vermont
- West Virginia
- Wisconsin
- Wyoming
Contact information
Bank of America has numerous departments designed to help customers with different types of financial and customer service needs. For example, if you’re interested in speaking with a lending specialist about a home equity line of credit, you can call 800-779-3894.
For general customer support (existing home equity customers), you may want to try one of the following options.
- Phone: 800-934-5626
- Live Chat
You can reach a live lending specialist or customer service representative Monday through Friday from 8:00 a.m.-10:00 p.m. ET and on Saturday from 8:00 a.m.-6:30 p.m. ET. Current borrowers may also be able to perform certain requests online or via the mobile app, such as scheduling recurring payments or requesting payoff statements.
Limitations
Despite the numerous contact methods available, Bank of America does not appear to have a general email address that customers can use to request assistance. If an email address or contact form is available, the bank doesn’t disclose this information in an easy-to-access location on its website.
User experience
Bank of America does make it easy to apply for a home equity line of credit. There are three ways to begin the process.
- Apply Online
- Talk to a Lending Specialist
- Schedule an Appointment
The secure online application takes around 15 minutes to complete. You should be prepared to share personal information like your name, Social Security number, date of birth, and more. The bank will also need key details about the property you’ll be using as collateral for your HELOC such as property location, estimated value of your home, and its primary use.
Note that the minimum credit limit you can apply for online is $25,000 and the maximum line of credit is $1,000,000 for a primary residence. If you wish to borrow less or more than these amounts, you’ll need to talk to a home equity specialist to see if you can qualify for a loan offer outside of these parameters.
Bank Of America’s Customer Satisfaction
It would be difficult, probably impossible, to find a lender with a perfect track record when it comes to customer satisfaction. Consumer complaints are to be expected with most businesses, but especially with financial institutions.
Still, it’s wise to review a lender’s customer service reputation and look for red flags before you decide whether or not to give a company your business. Here’s a look at what past customers had to say about their experiences with Bank of America.
Customer complaints
Between January 1 and December 31, 2021, the Consumer Financial Protection Bureau (CFPB) received 33,233 complaints regarding Bank of America.
- 3,500 complaints had to do with loan products such as mortgages or personal loans.
- 11,112 complaints pertained to a combination of debt collection and credit reporting issues.
The number of complaints that the CFPB received regarding Bank of America does seem concerning on the surface. But it’s important to remember that the bank has over 67 million customers. Those 33,233 complaints came from less than 0.05% of its customer. Other large financial institutions like Wells Fargo, Chase, and PNC also had a similar number of CFPB complaints during the same time period—sometimes more.
Third-party ratings
J.D. Power recognized Bank of America as number one in customer satisfaction in the J.D. Power 2022 U.S. Merchant Services Satisfaction Study. The financial institution also ranks high for online banking satisfaction among consumers—the third highest rating awarded in the nation.
Bank Of America FAQs
How long does it take to get a Bank of America home equity line of credit?
Bank of America doesn't disclose how long it will take to receive a HELOC. Because every situation is different, you'll want to work closely with your lending specialist to move through the application process and (if qualified) the underwriting process as quickly as possible.
What is the interest rate on a Bank of America HELOC?
The APR on a HELOC from Bank of America can vary based on numerous factors, including where you live. Borrowers in certain parts of the country may be eligible for lower interest rates than others. The lowest APRs are typically reserved for applicants with the best credit scores.
How much does a Bank of America HELOC cost?
Bank of America doesn't charge application fees, origination fees, closing costs, or annual fees for HELOCs. However, the bank may apply an early termination fee of $450 (depending on your state of residence) if you close your HELOC prior to 36 months from opening.
How We Evaluated Bank Of America Home Equity Services
We considered a variety of factors during our review of home equity financing options available through Bank of America. Here are some of the details that influenced our evaluation of the bank’s products and services.
- Home Equity Rates
- Types of Interest (Fixed Interest Rate, Variable Interest Rate, Etc.)
- Fees
- Lender Reputation
- Customer Service Track Record
- Regulatory Actions
- Complaints to Government Agencies
- Awards and Third-Party Ratings
Summary of Sacbee’s Bank Of America Home Equity Review
There are benefits and drawbacks to taking out a home equity line of credit with Bank of America. If you’re able to qualify for an attractive financing offer based on your creditworthiness, loan-to-value ratio and other factors, a HELOC could indeed be an affordable way to borrow money. Yet at the same time, using your home equity as collateral to secure a line of credit involves a measure of risk.
You should also comparison-shop before you commit to a specific home equity financing option. Finding the best home equity loans or HELOCs available might save you a sizable amount of money—perhaps hundreds or thousands of dollars in interest—over the life of a loan.
Michelle Lambright Black is a nationally recognized credit expert with two decades of experience. Founder of CreditWriter.com, Michelle's work has been published thousands of times by FICO, Experian, Forbes, Bankrate, MarketWatch, Parents, U.S. News & World Report, and many more.