2 Ways to get Discount on Bank of America HELOC rates 7/16/14

Bank of America HELOC rates 7/16/14

 

For a Loan-To-Value (LTV) below 70% and HELOC loan amount of $300,000 the interest rate for the HELOC would start at 3.935% before discounts.

With the prime rate at 3.25%, this means the rate is:
 3.93% BofA HELOC rate
-3.25% Prime Interest Rate
=0.68% above Prime

There are two ways to get a discount on these rates:

1. If you set up direct automatic payment of your monthly HELOC interest, then you get a 0.25% discount.

  3.935% HELOC rate before autopay
- 0.250% autopay discount
=3.685% HELOC rate after autopay
 -3.250% Prime Rate
 =0.435% above Prime

2. To get even more discount, you could immediately draw $25,000 from the HELOC to get another quarter percent discount.  (You must keep that $25,000 balance on your HELOC for 3 months.)

 0.435% above Prime
 0.250% immediate draw >= $25k discount
 0.185% above Prime