Bank of America Home Equity Line of Credit Calculator
by
Bank of America HELOC Estimator
Estimate your available credit line based on home equity and credit profile.
$
$
Excellent (740+)
Good (700-739)
Fair (660-699)
Below 660 (Not typically eligible)
Primary Residence
Secondary/Vacation Home
Your Estimated Credit Line
Combined Loan-to-Value (CLTV):
Total Equity Tapped:
*Disclaimer: Bank of America typically requires a minimum credit line of $25,000. Calculations are estimates based on standard 85% LTV guidelines.
function calculateHELOC() {
var homeValue = parseFloat(document.getElementById('homeValue').value);
var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value);
var ltvFactor = parseFloat(document.getElementById('creditScore').value);
var occupancyFactor = parseFloat(document.getElementById('propertyType').value);
if (isNaN(homeValue) || isNaN(mortgageBalance)) {
alert("Please enter valid numerical values.");
return;
}
if (ltvFactor === 0) {
document.getElementById('heloc-result').style.display = 'block';
document.getElementById('limitDisplay').innerHTML = "Ineligible";
document.getElementById('cltvDisplay').innerHTML = "N/A";
document.getElementById('equityDisplay').innerHTML = "Low Credit Score";
return;
}
// Adjustment for property type and credit score
var adjustedLTV = (ltvFactor / 100) * occupancyFactor;
// Formula: (Home Value * Adjusted LTV) – Current Mortgage = Max Line
var maxTotalLoan = homeValue * adjustedLTV;
var estimatedLine = maxTotalLoan – mortgageBalance;
if (estimatedLine < 0) {
estimatedLine = 0;
}
// Format numbers
var formattedLine = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' }).format(estimatedLine);
var formattedEquity = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' }).format(maxTotalLoan);
document.getElementById('heloc-result').style.display = 'block';
document.getElementById('limitDisplay').innerHTML = formattedLine;
document.getElementById('cltvDisplay').innerHTML = (adjustedLTV * 100).toFixed(1) + "%";
document.getElementById('equityDisplay').innerHTML = formattedEquity;
if (estimatedLine 0) {
document.getElementById('limitDisplay').style.color = "#e31837";
document.getElementById('limitDisplay').innerHTML += "Below $25k Minimum";
} else {
document.getElementById('limitDisplay').style.color = "#333";
}
}
Understanding the Bank of America HELOC Calculation
A Home Equity Line of Credit (HELOC) allows homeowners to borrow against the equity they have built in their property. Bank of America typically allows qualified borrowers to access a line of credit that, when combined with your first mortgage, equals up to 85% of your home's appraised value.
Key Eligibility Factors
Combined Loan-to-Value (CLTV): This is the most critical metric. If your home is worth $500,000, an 85% CLTV cap means your total debt (mortgage + HELOC) cannot exceed $425,000.
Credit Score: While Bank of America considers various scores, a score above 720 typically unlocks the highest LTV ratios and the lowest variable interest rates.
Debt-to-Income (DTI) Ratio: BoA generally looks for a DTI ratio below 43%, though this can vary based on your total liquid assets.
Minimum Line Amount: Generally, the minimum initial line of credit for a Bank of America HELOC is $25,000.
Realistic HELOC Example
Imagine your primary residence is valued at $400,000 and you owe $200,000 on your current mortgage. With a high credit score, you might qualify for an 85% CLTV.
$400,000 (Value) x 0.85 (LTV Cap) = $340,000 Total Borrowing Limit.
Unlike a traditional home equity loan, which provides a lump sum, a HELOC works like a credit card. You only pay interest on the amount you actually draw. Bank of America offers a 10-year draw period followed by a 20-year repayment period. Additionally, BoA often provides options to convert portions of your variable-rate balance into a fixed-rate loan, providing protection against rising market rates.