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One of the benefits of a home equity line of credit from Bank of America® is our fixed rate loan option, which makes your payments predictable, could protect you from rising interest rates, and allows you to customize your loan structure. Here’s how it works.
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Accounts overview screen on mobile device
A typical Bank of America HELOC begins with a variable interest rate, in which your payments can change based on the fluctuating market rates. But if you’re concerned about the possibility of rising interest rates, or simply prefer more predictable monthly payments,
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Calendar payments screen on mobile device
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“Payment alert”
there’s no fee to convert some or all of your HELOC’s balance to a fixed rate.
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Fixed rate
Variable rate
Though this fixed rate loan option is typically set higher than the current variable rate, it would not change, which protects you from the possibility of rising interest rates. And if interest rates go down, you can easily convert your fixed rate balances back to your variable rate.
Let’s say you have a $50,000 credit line, and use $35,000 of it for various expenses.
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Home Equity Credit Line: $50,000
Available Credit $50,000
Variable Rate Balance $35,000
That balance would start at a variable rate, but could be converted to up to three fixed rate loan options at one time, and you can customize your payment terms for each.
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Available Credit $15,000
Debt Consolidation $20,000 Fixed
Backyard Deck $10,000 Fixed
Kitchen Appliances $5,000 Fixed
Your fixed and variable balances appear as separate line items in online and Mobile banking,
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Loan accounts overview screen on mobile device
like separate loans.
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HELOC Available Credit - $15,000.00
Debt Consolidation - $20,000.00
Backyard Deck - $10,000.00
Kitchen Appliances - $5,000.00
You will receive individual statements for each loan, and payments will be managed independently. But they’re all connected to your available line of credit. So as you pay down fixed rate balances,
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Available Credit $15,000
Debt Consolidation $20,000 Fixed over 10 years
Backyard Deck $10,000 Fixed over 7 years
Kitchen Appliances- $5,000.00
your available credit on your parent account will be replenished.
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Available Credit $50,000
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A fixed rate loan option gives you more control over your interest rate and payments, helping you feel more confident about reaching your financial goals. If you’re a new or existing HELOC customer, you could take advantage of our fixed-rate loan option.
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What would you like the power to do?®
Learn more today.
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Bank of America logo®
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Learn more about our fixed-rate loan option
bankofamerica.com/HELOCFixedrate
Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.
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