Bank of America Home Equity Loans

Home equity loans are considered to be second mortgages, and they work in very much the same way as a traditional mortgage. The main difference is that you can apply for a home equity loan for just about any reason, therefore the purchases you make from the funds you receive do not need to be related to your home. Perhaps, you would like to pay for a wedding, college tuition, a new car, or maybe some home renovations.

A home equity loan will be advanced to you as a lump sum, and you will need to repay it in fixed monthly installments over a set period of time. Much like a conventional mortgage you may choose to do this over a 15 or 30 year term, although you can obviously run a home equity loan alongside your mortgage so they both mature at the same time.

One of the most popular lenders of home equity loans is the Bank of America. Most consumers should find it fairly easy to obtain this type of financing from the Bank or America, although they will have to meet certain criteria to be approved. This will generally involve an applicant proving their credit worthiness via their credit score, and their ability to repay the loan, which will entail a check of their current employment and income.

Details of a Bank of America home equity loan include:

  • It is offered at a fixed interest rate
  • You will need to make fixed monthly payments and automatic deduction from your checking account is available
  • If you apply for a loan of $500,000 or under there will be no application fees or closing costs to pay
  • The maximum term is 25 years (not 30 years as some other lenders may offer)
  • You can have the funds paid to you via electronic transfer to your checking account or in the form of a single check
  • There are possible tax deductions available for homeowners with a home equity loan

It is extremely important to note that a home equity loan will not be available as a first mortgage, and therefore you must already have a mortgage or lien on your property in place prior to applying for a home equity loan. Bank of America also offers a number of discounts:

  • You will receive a 0.25% discount if you manage to maintain a qualified Bank of America relationship account
  • A further 0.25% discount will be granted for consumers who maintain an automatic payment from a Bank of America checking or savings account.

In order to apply for a Bank of America home equity loan you will need provide personal information for all borrowers, details of your employment, income, and any other sources of income you may have, the outstanding balance on your current mortgage, Bank of America account and routing numbers, and the estimated market value of your property.

Why would you choose to get a home equity loan from the Bank of America? The Bank of America is known to be the leading commercial bank in the United States, although it is equally well known throughout the world. They were originally founded in San Francisco during 1904, and were initially known as the Nations Bank. In their early years their mainstay of business was from groups of farmers who had emigrated from Italy.

A few years on and the Bank of America now serves in excess of 60 million consumers. Their headquarters are now based in North Carolina, they have a total of 6,000 banking offices, and nearly 20,000 ATMs. Over 24 million people use the Bank of America's online services and they are even listed in the New York Stock Exchange (NYSE).

This simply means that if you are considering taking out a home equity loan from the Bank of America, you are safe in the knowledge that they are a solid and highly prestigious financial institution. Home equity loans are merely one part of the puzzle when it comes to the Bank of America's core business. They also provide various other financial services including auto loans, business banking, online banking, credit cards, cash management, capital raising, trade services, insurance, retirement services, student loans, mortgages, savings and a whole host more.

The one factor you should be aware of about a Bank of America home equity loan is the interest rate is likely to be higher than your first mortgage loan. However, with that said, home equity loans are known to offer substantially lower interest rates than other types of finance, such as personal loans and credit cards.