Apply for a HELOC today and you could get:
0.50% interest rate discount when you1
- Take initial advances totaling between $35,000 and $49,999 within 15 calendar days after closing, and
- Maintain those outstanding balances for at least the first three billing cycles.
1.00% interest rate discount when you1
- Take initial advances totaling $50,000 and above within 15 calendar days after closing, and
- Maintain those outstanding balances for at least the first three billing cycles.
Bank-paid closing costs
You’ll also enjoy the added benefit of bank-paid closing costs for lines of credit between $10,000 and $500,000.
That’s up to a 2.00% interest rate discount when you set up auto-pay and make a minimum draw of at least $50,000 within 15 days of closing.
HOW IT WORKS
How to secure this offer
Apply online for a HELOC and meet these initial requirements:
- Applications must be received between 1/1/21 and 6/30/21 and close by 9/30/2021.
- The combined loan-to-value (CLTV) for the property securing the HELOC cannot exceed 85% (80% max CLTV in Texas).
- You must be a CA, TX, AZ, NM, CO, AL, or FL resident.
If you meet certain conditions, we’ll pay your closing costs (the cost to open the line of credit) for a line of credit between $10,000 and $500,0001.
- Withdraw between $35,000 and $49,999 within 15 days of opening the account.
- Withdraw $50,000 or more within 15 days of opening the account.
To keep your discounted rate, you’ll need to:
- Set up automatic payments from a BBVA checking account.
- Maintain a $35,000 to $49,999 balance for the first three billing cycles for a 0.50% interest rate discount.
- Maintain a $50,000 or more balance for the first three billing cycles for a 1.00% interest rate discount.
Frequently asked questions
What is a HELOC?
A home equity line of credit, or HELOC, is a revolving line of credit that uses your home as collateral. A HELOC works much like a credit card—allowing you to draw approved credit at any time during a specified draw period.
Monthly payment amounts are based on the outstanding line balance. If principal is repaid during the draw period payments are made, credit becomes available again.
How does a HELOC work?
A home equity line of credit, or HELOC, is a line of credit you get based on the amount of equity you have in your home, your creditworthiness, and your debt-to-income ratio.
Interest Rate: The interest rate on a HELOC is adjustable, meaning it changes periodically to reflect market conditions.
Terms: A typical term for a HELOC is 20 years with a draw period of 10 years, during which time you can access your credit as you need it up to the limit.
During the draw period, you will only pay interest on the balance (not principal); therefore, your monthly payment will change based on your outstanding balance. During the draw period, you will regain access to your credit up to the limit when you pay down your balance, much like a credit card.
Repayment: The second phase of a HELOC is the repayment period during which you can no longer draw on your line and must start paying back your balance plus interest.
What can I use a HELOC for?
You can use your funds for a variety of purposes, including home improvements, major purchases (appliances, cars, RVs, boats, etc.), refinancing your existing mortgage, debt consolidation2, and miscellaneous expenses.
Is a HELOC secured or unsecured debt?
A home equity line of credit is secured by the equity in the borrower’s home; therefore, it is considered secured debt.
How much equity is required for a HELOC?
Most lenders require borrowers to maintain 10-20 percent of their equity after taking out a home equity loan or line.
For example, if your home is worth $300,000 and you owe $200,000 on your first mortgage, based on 10-20 percent loan-to-value ratio, you could borrow between $40,000 and $70,000. Of course how much you can borrow also depends on your creditworthiness and your debt-to-income ratio.
How does a HELOC affect my credit score?
A home equity line of credit will appear on your credit report as a revolving line of credit. A HELOC is considered a “secured” line of credit, which can make it more favorable to credit agencies than a credit card or unsecured line of credit.
What matters most is how you manage your line of credit. Missing or late payments can have a negative impact on your score, as can maxing out your available credit.
Can I get a HELOC if I have a mortgage?
Yes, you can if you have enough equity in your home to borrow against. If you have not built sufficient equity in your home you likely not be able to qualify for a HELOC.
What’s more, many lenders prefer that you have your mortgage for at least a year or two before you can apply for a home equity loan or line of credit.
If you do have sufficient equity and acceptable credit, you can qualify for a HELOC while also having a mortgage. In fact, home equity loans and lines are often referred to as “second mortgages.”
Can I get a HELOC with an FHA loan?
The FHA (Federal Housing Administration) doesn’t offer home equity lines of credit. However, if you have an FHA loan and build up enough equity in your home, you can apply for a HELOC from another lender.
Details you need to make a smart decision
1Rate Discount: For applications received between January 1, 2021 and June 30, 2021, and which close on or before September 30, 2021, discounted margins are available in the following amounts if you take minimum draws within 15 days of account opening when that minimum balance is maintained for at least the first three billing cycles: (1) a margin discount equal to 0.50% will apply for initial draws between $35,000 and $49,999; and (2) a margin discount equal to 1.00% will apply for initial draws of at least $50,000. In addition, automatic payment from a BBVA deposit account required to qualify for rate discount. Discounted margins are subject to forfeiture upon borrower becoming 60 or more days past due or upon failing to meet one of the above requirements after closing. This offer may be combined with other segment/relationship discounts and Bank-paid closing costs. Discount offer is not available for Purchase Money Second Lines or line increases on existing BBVA HELOCs.
Interest Rate: Variable Annual Percentage Rate (APR) is based on The Wall Street Journal Prime Rate (“Prime”) (3.25% as of 3/17/2020) plus a margin as identified in your credit agreement. APR will vary with Prime. Recent APRs range from 3.99% to 10.35% (includes 1.00% interest rate reduction for automatic payment from a BBVA deposit account). Your rate will depend on a number of factors, including your credit history. Your APR will not exceed 18% or go below 2.50% at any time during the term of your account. Prime may change at any time and is subject to change without notice. Contact us for current rates.
All HELOC applications are subject to program eligibility, underwriting, and collateral requirements and approval, including credit approval. Property insurance required, including flood insurance where applicable. Certain property types are not eligible collateral. Available only to California, Texas, New Mexico, Arizona, Colorado, Alabama and Florida residents. HELOCs have a 1-year draw period, which we may renew annually up to a maximum of 10 years. During the draw period you will be required to make monthly payments of accrued interest, plus any principal balance in excess of the credit limit, with a minimum payment of $75. CHOOSING TO REPAY ONLY ACCRUED INTEREST DURING THE DRAW PERIOD MAY CAUSE YOUR MONTHLY PAYMENT TO INCREASE, POSSIBLY SUBSTANTIALLY, ONCE YOUR HELOC TRANSITIONS TO THE REPAYMENT PERIOD. Following the draw period, the length of the repayment period will depend on the amount of the then-outstanding balance. If your outstanding balance is less than $20,000, the repayment period will be 10 years. If the outstanding balance is $20,000 or greater, the repayment period will be 15 years. During the repayment period, the minimum monthly payment will be an amount sufficient to repay the outstanding balance over the remaining term at the APR in effect at the start of the repayment period. If rates subsequently increase, your minimum payments may not be sufficient to fully repay the principal that is outstanding on your line. If they are not, you will be required to pay the entire outstanding balance in a single balloon payment at maturity (not applicable in Texas). Texas HELOCs: If rates increase after the start of the repayment period, your monthly payment will increase so that the balance is fully repaid at maturity.
Closing Costs: BBVA will pay for all closing costs on new home equity products with amounts ranging from $10,000 to $500,000. Credit requests for less than $10,000 or more than $500,000 shall be subject to actual closing costs incurred and permitted by law. Bank-paid closing costs are subject to recoupment from borrower(s) if loan is paid off within 2 years (not applicable in Texas). Closing costs vary by state and typically range from $675 on a $10,000 credit line to $11,114 on a $1,000,000 credit line. Texas closing costs typically range from $935 to $7,339 depending on credit line amount.
Additional information: Annual Fee: $75 on the first anniversary of the line and every year thereafter (not applicable in Texas). Overlimit Fee: $25 per occurrence when you cause your credit line to go over your credit limit (not applicable in Texas). Texas Late Fee: 5% of the minimum payment amount or $15, whichever is less. Non-Texas Late Fee: $25. Early Closure Fee: If you close your line within 2 years from the opening date, any third-party closing costs paid by BBVA will be charged back to your HELOC (not applicable in Texas). Texas HELOCs: BBVA cannot use a customer’s home equity funds to pay (in part or in full) BBVA non-homestead debt at account opening. Minimum draw in Texas is $4,000. To use convenience checks to make draws, borrower must submit request for convenience checks. VISA Platinum Card is not available.
Debt Consolidation: The relative benefits you receive from loan consolidation will vary depending on your individual circumstances. If your Home Equity Loan or Line has a longer term than the bills you are consolidating, you may not realize savings over the entire terms of your Home Equity Loan or Line.
BBVA Checking Accounts: Checking accounts subject to approval, which may include credit approval. $25 minimum opening deposit required.
©2020 BBVA USA Bancshares, Inc. BBVA USA is a Member FDIC and an Equal Housing Lender NMLS #402936. BBVA and BBVA Compass are trade names of BBVA USA, a member of the BBVA Group. Rev. 4/2021 / #1023528