Bank of America Home Equity Line of Credit

Buying a new home is actually an investment, and in fact, purchasing a home is the biggest investment that most Americans will make. After a homeowner has made some payments on their home, they will begin to build equity. Equity is the amount in which the homeowner will pocket if they were to sell their home. Homeowners often use their equity as a source of funds that can be borrowed on. Borrowing on the equity in a home is often used to consolidate debt, home improvement projects or even purchasing a new car.

Regardless of what the money will be used for, the homeowner has a number of options with how to borrow on their equity. HELOC loans are home equity line of credit programs designed to allow homeowners to borrow on their equity. However, a home equity line of credit works differently than a traditional equity loan. One of the most prominent figures involved with providing home equity line of credit programs is Bank of America. Bank of America has a few advantages that they provide their customers through home equity lines of credit. For example, when a homeowner qualifies for this type of equity loan, they will have more flexible options than if they were to use a traditional home equity loan.

Bank of America's home equity line of credit provides funds to the homeowner as the homeowner needs the funds. For example, if a homeowner needs funds all at once, they have the option to do so. If the homeowner only needs a little at a time, they will have the option to do so. What makes a HELOC loan unique when compared to other home equity loans is the fact that the homeowner can borrow on the loan more than once.

There are some advantages to a Bank of America home equity line of credit that makes it an attractive option. For example, the interest payments made on the loan by the homeowner are tax deductible. This means the homeowner will be able to write off their interest payments that they have made on their HELOC loan. Bank of America home equity line of credit loans can be used to consolidate bills into a single monthly payment. The advantage to this provides the homeowner to choose a lower interest rate on their debt instead of paying higher interest rates on personal loans or credit cards.

The advantage to having a home equity line of credit when compared to traditional home equity loans are too much to ignore. Once the homeowner has consolidated their bills and paid off what they have borrowed on their HELOC loan, they can then use the HELOC loan for other purposes like home improvements. Home improvement projects are considered an investment to secure the overall investment of the home. Moreover, home improvement projects add value to the home. The more the home is worth, the more equity the homeowner will have. Another advantage is being able to use the HELOC loan at anytime.

The line of credit can be accessed through a Visa access card that is provided by Bank of America. The HELOC loan basically operates much like a credit card, except with a lower interest rate. Bank of America home equity line of credit loans are basically open for a period of time, which is typically 5 to 10 years. In order to determine if the homeowner qualifies for a home equity line of credit, the homeowner must have equity in their home and pass a credit check. If the homeowner has poor credit, they will have more of a difficult time qualifying for this type of credit.