Much like a credit card, a HELOC is a revolving credit line that you pay down, and you only pay interest on the portion of the line you use.
If you still owe $120,000 on your mortgage, you'll subtract that, leaving you with the maximum home equity line of credit you could receive as $50,000. Through Bank of America, you can generally borrow up to 85% of the value of your home minus the amount you still owe.įor example, say your home's appraised value is $200,000. Your home's equity is the difference between the appraised value of your home and your current mortgage balance. A HELOC is a line of credit borrowed against the available equity of your home. At Bank of America®, we want to help you understand how you might put a HELOC to work for you. See important information on this web page.Ī home equity line of credit, or HELOC, could help you achieve your life priorities. In life, you often face major home improvement projects, unexpected costs, education expenses,
