WARNING! Do not get your heloc through Bank of America

[Henry Lazerow]

I started the process over 3 months ago. They quoted me at 85 LTV, I then confirmed a month letter once assigned an agent told her my building was 4 units and she quoted 85 LTV and about 1.25 over prime. Then another month later after appraisal a new agent called me saying they can only do 75 LTV and I come discover the rate is actually 2.15 over prime when finnaly received full paperwork there is a .25 reduction for auto payments so 1.9 over prime still awful for 75 ltv.

They have no fees but the whole process was a huge waste of time. Buyer beware! I am cancelling and exploring local credit unions which I had used in the past, unfortunately I lost my old heloc during my cash out refinance and moved lenders. 

[Don Konipol]

Quote from @Henry Lazerow:

I started the process over 3 months ago. They quoted me at 85 LTV, I then confirmed a month letter once assigned an agent told her my building was 4 units and she quoted 85 LTV and about 1.25 over prime. Then another month later after appraisal a new agent called me saying they can only do 75 LTV and I come discover the rate is actually 2.15 over prime when finnaly received full paperwork there is a .25 reduction for auto payments so 1.9 over prime still awful for 75 ltv.

They have no fees but the whole process was a huge waste of time. Buyer beware! I am cancelling and exploring local credit unions which I had used in the past, unfortunately I lost my old heloc during my cash out refinance and moved lenders. 

B of A is infamous for changing the terms when the loan/interest rate market changes.  They can also be unbelievably slow, inefficient and always seem to need “additional” documentation.  Years ago I had a home loan with B of A and tried to refi at a lower rate when interest rates declined.  I was self employed which seemingly presented no problems as I was able to provide three years tax returns, etc.  A few days before scheduled closing I received a call from B of A informing me that as part of their due diligence their underwriter exams the website of the company I own since I’m self employed, and that they couldn’t approve my loan because my company website didn’t meet their underwriting guidelines!  They actually requested that I change my website to meet with their guidelines or they wouldn’t make the loan! 
Since that time I’ve purchased, either for myself or for my syndication company, over $100 million in real property, and obtained financing totaling over $50 million.  And NEVER used B of A.  Hell, my website probably wouldn’t qualify.