Fixed-Rate Loan Option

[Music in background throughout]

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.

[Accounts Overview screen in Mobile Banking on phone]

On screen copy:
Variable interest rate

A typical Bank of America HELOC begins with a variable interest rate, in which your payments can change based on the fluctuating market rates.

[animated chart depicting rising and falling interest rates]

But if you're concerned about the possibility of rising interest rates, or simply prefer more predictable monthly payments,

[example calendar payments screen on mobile device showing 'payment alert' notification]

there's no fee to convert some or all of your HELOC's balance to a fixed rate.

On screen copy:
Fixed rate
Variable rate

[animated chart depicting how a variable rate can change up and down while a fixed rate remains at one set 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.

[The same animated chart shows the change from a fixed rate that stays the same converting back to a variable rate that changes up and down]

Let's say you have a $50,000 credit line, and use $35,000 of it for various expenses.

On screen copy:
Home Equity Credit Line: $50,000

[Animated boxes showing the relationship between credit that is available changing once you begin drawing from the line of credit. Boxes show Available Credit starting at $50,000 going down to $15,000 in direct proportion to a different box representing the Variable Rate Balance for the $35,000 that was spent.]

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.

[Example animated chart showing Available Credit $15,000 while the Variable Rate Balance of $35,000 is converted to fixed for three example HELOC loan purchases, each with different payment terms. Debt Consolidation $20,000 Fixed over 10 years. Backyard Deck $10,000 Fixed over 7 years. Kitchen Appliances $5,000 Fixed over 3 years]

Your fixed and variable balances appear as separate line items in online and mobile banking, like separate loans.

[Loan accounts overview screen on mobile device showing four separate accounts. 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,

[Animated chart that illustrates how Available Credit will be replenished in direct proportion to Fixed-Rate loan payments. Available Credit box starts at $15,000 and grows back to $50,000. Debt Consolidation loan icon begins at $20,000 Fixed over 10 years but shrinks as it's paid off. The Backyard Deck loan icon begins at $10,000 Fixed over 7 years and shrinks as it's paid. Kitchen Appliances loan icon begins at $5,000.00 Fixed over 3 years and also shrinks with payments made.]

your available credit on your parent account will be replenished.

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.

On screen copy:
What would you like the power to do?®

If you're a new or existing HELOC customer, you could take advantage of our fixed-rate loan option. Learn more today.

On screen copy:
Bank of America logo®
Learn more about our fixed-rate loan option
bankofamerica.com/HELOCFixedRate

On screen disclosures:
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. Equal Housing Lender. Bank of America, N.A. Member FDIC. ©2022 Bank of America Corporation. All rights reserved.

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