BMO Harris HELOC

BMO Harris HELOC Review

BMO Harris HELOC is offered by BMO Harris Bank, a bank founded in 1882 and based in Chicago, IL. BMO Harris HELOC are available in 48 states (and Washington, DC).

BMO Harris HELOC FAQ

How much can you borrow with a HELOC?

HELOCs are lines of credit that are secured by your home. Once you get approved for a certain amount, you can access your funds by check, phone, credit card, or online up to your HELOC amount.

BMO Harris HELOC allows borrowers to apply for lines of credit of up to $1,000,000. Note that the maximum loan amount you can borrow will vary depending on the value of the property, how much you owe on it, and your creditworthiness.

This lender's maximum loan to value rate is 85% for qualified borrowers. That means the total debt secured by the property cannot exceed 85% of its value. Let's say you own a property with a current market value of $100k, but you still owe $20k on your mortgage. Your equity would be $80k. In this scenario, if you have excellent credit, you may qualify for a line of credit of up to $65k.

What are the terms for a BMO Harris HELOC?

HELOCs have a draw and a repayment period. During the draw period you can borrow as much as you need up to your credit limit. After the draw period, you are responsible for repaying the loan. 

BMO Harris HELOC offers home equity loans with a maximum term of 30 years with an additional draw period of up to 10 years.

Is there a minimum draw requirement?

No, there isn't a minimum draw requirement.

What range of rates does BMO Harris HELOC offer?

BMO Harris HELOC offers APRs as low as 3.89% and up to 8.93%.

Remember the APRs of HELOCs do not include points and financing charges, just the interest rate. Most home equity lines of credit have a variable interest rate. Fixed interest rates -- if available -- typically have higher APRs, but your monthly payments don't change over the life of the line of credit.

What fees does BMO Harris charge for a HELOC?

The good news is BMO Harris Bank does not charge closing costs or processing fees. However, BMO Harris Bank does charge a $75 annual fee.

Some lenders charge an origination fee for processing, underwriting, and funding a mortgage. Typically fees range from 0.5% to 5% of the loan amount. Whenever possible, go with lenders that don’t charge origination fees.

What types of property can you use as security for a HELOC with BMO Harris?

Lenders often have restrictions on the type of properties they will accept as security for a HELOC. BMO Harris HELOC will consider lines of credit secured by the following property types:

• Primary homes.
• Secondary homes and vacation properties