If you want to shop, then SHOP.
HELOCS come with different rules from each institution. Their money, their rules.
Call every bank/credit union and ask what their pricing is.
It may depend on credit score, amount of line and equity position.
Be clear on closing costs. Some will offer no closing costs, but an annual fee. Some have an early termination fee if you close the line of credit in the first 3 to 5 years.
Is there a ‘floor rate’?
Understand that they will record a 2nd lien against your property for the maximum amount of the line, whether you use it or not.
Be clear on the repayment terms. It may be interest only for the 1st 10 years and then a mandatory principal & interest payment on a 10 year amortization after that.
A $200K HELOC line is a $200K 2nd lien against your property.
Know that having a HELOC recorded against your property WILL complicate any future refi that you attempt, even if you have not drawn $1 on the line.
(Not impossible, but complicate)
Depending on your needs, current rate, equity situation AND ability to qualify,
a cash out refi may be another/better option for you.
HELOC rates are ALWAYS adjustable and will probably only go up from here.
The rate that you quoted above is not much lower than a 30yr fixed rate. Is it worth the risk TO YOU ?
Best HELOC I ever saw was a few years back at prime minus 1.50 with no floor.
That HELOC is currently @ 1.75% but they no longer offer it.
In general, rates at BofA are often terrible.
