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    Equity Credit Line Process    
   
   
   
Put your equity to work
Home equity lines of credit are versatile tools for taking
control of your finances and making the most of the
equity you've built in your home.In this section, you'll
learn many ways you can use home equity loans and why
Bank of America’s choices give you extra advantages.

Ways to use home equity lines of credit

How equity loans can consolidate debt
and lower payments

How tax-deductible interest can mean greater savings

Bank of America Home Equity Line of Credit
vs. other lines of credit

Ways to use home equity lines of credit
1.  Reduce monthly payments by consolidating debts on credit cards and other consumer loans, lowering the interest rate, and exchanging compound interest for simple interest
2.  Reduce your tax burden by exchanging nondeductible interest (such as interest on credit cards and car loans) for loan interest that may be fully tax deductible (see your tax advisor for complete details)
3.  Get ready cash for investment opportunities, unexpected purchases or emergencies as they come up (lines of credit only)
4.  Take cash for a specific reason, such as remodeling, college tuition, a new car, or a vacation

Using equity loans to consolidate debt and lower your monthly payments
Here's an example of how you could use a Bank of America Home Equity Line of Credit (HELOC) to pay off credit cards and other consumer debts. It's a great way to give your monthly budget some relief.
  
  Put Your Equity to Work
    Learn About Lines of Credit
    Handling Closing Costs
   All About Rates
   The Approval Process
   Closing the Loan
   
   Balance  Annual Percentage  Minimum Monthly Payment
 Bank Card #1  $ 2,500  16.9%  $ 63.38
 Bank Card #2  $ 4,500  16.9%  $114.08
 Store Cards  $ 3,000  19.8%  $ 76.24
 Auto Loans  $15,000  10.8%  $324.64
 Personal Loans  $10,000  11.8%  $262.36
 Total  $35,000    $840.70
Bank of America $35,000 Home Equity Line of Credit
 APR  First Year Monthly Payment
(interest only)*		  First Year Monthly Payment Savings*  Total First Year Savings
 10.375%  $302.60  $530.24  $6,459.00

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*Payments and savings are during the 5 or 10 year interest-only payment period of a no-closing cost HELOC with 70% combined loan to value, and an interest rate of 10.375%. After the interest-only period, your payment converts to a variable principal and interest payment that is paid off over 15 additional years. Example assumes 28% tax bracket, no change in prime rate, is for information only, and is not a commitment to lend. See HELOC Terms Summary for important terms on our most popular home equity lines.
How tax-deductible interest can mean greater savings
The interest on your home equity loan may be tax-deductible (see your tax advisor). This example assumes a 28% tax bracket to show the annual savings possible.

Potential first year tax savings on a $35,000 loan balance
   
   
Before Taxes After Taxes
 APR  First Year Annual  Finance Charge  Effective Rate  First-Year Tax  Savings*
 Credit Cards and  Personal Loans  18%  $6,300  18%  n/a
 Home equity line  of credit  10.375%  $3,630  7.47%  $1,016
Total First Year Savings with Bank of America Home Equity Line of Credit
 $2,670  $3,686

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*Payments and savings are during the 5 or 10 year interest-only payment period of a no-closing cost HELOC with 70% combined loan to value, and an interest rate of 10.375%. After the interest-only period, your payment converts to a variable principal and interest payment that is paid off over 15 additional years. Example assumes 28% tax bracket, no change in prime rate, is for information only, and is not a commitment to lend. See HELOC Terms Summary for important terms on our most popular home equity lines.

Bank of America Home Equity Line of Credit vs. other credit choices
Here are some important advantages to using a Bank of America Home Equity Line of Credit.
   
   
 Bank of America  HELOC  Credit Card  Personal Loan  Other HELOCs and  Home Equity Loans
 Higher Credit  Limits
Yes!
Our flexible guidelines often give you a larger credit line — and we use appraised value. Credit lines available from $15,000 to $500,000.
No.
These unsecured loans usually have much lower credit limits.
No.
These unsecured loans usually have much lower credit limits.
Maybe.
More restrictions often mean a smaller credit line and less payment savings. Often use tax-assessed value (which can be dramatically lower). Many limit your credit line to $100,000 and maximum property value to $350,000.
 Lower  Payments
Yes!
You can save up to 70% on your monthly payments. Interest-only options reduce monthly payments during the early years of loan, allowing flexible budget management.
No.
You're typically required to pay 2% of the outstanding balance each month. (And you'd likely pay a small fortune in interest charges.)
Maybe.
But shorter terms and higher rates mean less payment savings.
Maybe.
Minimum payments often include principal reduction, and minimum balances may be required.
 Interest  That's up to  100% Tax  Deductible   (See your tax  advisor.)
Yes!
Lower your tax bill with interest that is usually tax deductible.
No.
No.
Yes.
 Cash When  You Need It
Yes!
Just write yourself a check for $250 or more.
Sure...
and pay a hefty cash advance fee!!
No.
Maybe.
But watch out for cash advance fees and high minimum draw restrictions.
 Credit  Becomes  Reusable  Again as You  Pay Your  Balance
Yes!
Your credit line is open for 5 or 10 years.
Yes.
No.
Maybe.
 Longer  Terms
Yes!
Up to 25 years. Your credit line is open for 5 or 10 years, then converts to a variable principal and interest payment that is paid off over 15 additional years.
Yes.
But you're typically required to pay 2% of the outstanding balance each month, which may mean higher payments.
Maybe.
Many are limited to 15 year loans.
Maybe.
Many have shorter terms and consequently higher payments.

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See HELOC Terms Summary for important terms on our most popular home equity lines.

   
   
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