Bank of America Home Equity offers you a feasible option to use the appraised value of your home in obtaining finance for education expenses, bills, refinancing or doing home renovation or repair. It is kind of second mortgage which can be availed either through a home equity loan or a home equity line of credit commonly referred to as HELOC. The upper limit of the loan amount is based on a certain percentage (usually 80%) of the accumulated equity of your home in both the cases. However, they differ in the mode of payment and in the rate of interest.
Home Equity Loan: A home equity loan functions very much like a second mortgage with the facility to get the money in a single lump sum amount. The repayment is extended over a period of time with a fixed interest rate and a fixed monthly payment. You can use a home equity loan to pay off your existing mortgage or accomplish tasks that require a huge sum of money, such as home repair, renovation or bill payment. With a Bank of America home equity loan, you can avail benefits that are not available with most other mortgages, such as tax deduction, one-time cash pay out and fixed interest rates
Home Equity Line of Credit: Bank of America home equity line of credit, unlike a home equity loan, allows you to draw money much like a credit card. You can take out funds as much as your maximum limits permit and when you repay the outstanding balance, the money is available again for use. A home equity line of credit is a good option for consolidation of loans with higher rates and also to pay expenses for projects aimed at increasing the value of your home. While shopping for the home equity line of credit from Bank of America, give special attention to its features and insist the lender to include your preference. The features that vary are annual fee, cancellation fee, margin which is used to determine the HELOC rate, prime rate, the amount you must withdraw each time you borrow, Teaser rate, automatic payment discounts and up-front fees.
Bank of America Home Equity Calculator
Whether you choose a home equity loan or a line of credit, you can use Bank of America home equity calculator to get an estimate of your monthly payment as well as the rates applicable. The calculator is available at the official website of the bank with a simple user interface that requires you to enter the minimum and maximum loan amount you need, the estimated value of your home, the amount you still owe, your credit profile and the zip code of your home. Once all the parameters are entered correctly, you will be able to see the amount you are supposed to pay monthly for the entire term of loan. For detailed information you can also call at 1.800.782.9022.
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