Bank of America Fixed-Rate Mortgage
Bank of America Fixed-Rate Mortgage
What we like:
|Minimum Credit Score||N/A|
|Minimum Down Payment||5%|
|Loan Terms||15 – 30 Years|
|Other Loan Types||Jumbo, Adjustable, FHA, VA, refinance *eligibility and terms may differ|
- Bank of America is one of the country’s largest banks, so you have access to many local branches for support during the mortgage process—or you can complete much of the process online.
- Bank of America provides fixed- and adjustable-rate mortgages, conventional and government-backed loans, and even its own Affordable Loan Solution that allows lower-income borrowers to get a loan with just 3% down.
- Bank of America doesn’t have great customer service reviews and has received many complaints from would-be borrowers and those who have mortgages with the bank.
Bank of America is the second-largest banking institution in the United States and services just over 10% of the country’s bank deposits. It provides a full array of financial services and, through Merrill, also provides investment services.
Bank of America aims to make home buying easy by offering many types of mortgage loans. You can visit a local branch or apply online to find a mortgage, which makes borrowing convenient.
This Bank of America review will help you decide whether you should consider a mortgage from the bank.
In this review:
- Bank of America mortgage review
- Bank of America mortgage refinance review
- Eligibility & application: How to get a Bank of America home loan
- Bank of America mortgage rates
Bank of America mortgage review
|Loan amounts||bankofamerica-mortg-1494-amountlow to bankofamerica-mortg-1494-amounthigh||bankofamerica-mortg-1495-amountlow to bankofamerica-mortg-1495-amounthigh||bankofamerica-mortg-1496-amountlow to bankofamerica-mortg-1496-amounthigh||bankofamerica-mortg-1499-amounthigh|
|Min. down payment||bankofamerica-mortg-1494-downpaymentlow||bankofamerica-mortg-1495-downpaymentlow||bankofamerica-mortg-1496-downpaymentlow||bankofamerica-mortg-1499-downpaymentlow|
Bank of America can be a great bank to borrow from if you want to deal with a large national institution where you can go into a branch and talk to a mortgage professional about your loan. If you want a range of loan options, Bank of America is also a good lender to consider.
But Bank of America also charges more upfront fees than some online lenders. And it doesn’t have great customer service reviews, which cite long wait times and difficulty connecting with the right person to answer a question.
If you’d prefer to deal with a smaller lender that provides better service or an online-only lender that may charge lower fees, you should look elsewhere.
Pros & cons of BoA home loans
- You have your choice of different loan programs, including fixed or adjustable-rate mortgages, jumbo loans to purchase a more costly house, government-backed loans for easier qualifying requirements, or Bank of America’s Affordable Loan Solution mortgage for first-time homebuyers.
- You can qualify for some loans with down payments as low as 3%, which make it easier for you to afford a new home. The bank also facilitates home buying by helping you qualify for programs that assist with closing costs or down payments.
- Existing Bank of America customers can qualify for discounts on fees associated with getting a mortgage.
- Bank of America has received poor customer service reviews from many customers.
- Bank of America is a large bank, which could be a con if you prefer smaller online lenders or family-owned mortgage loan providers.
- Bank of America charges more up front fees to customers than some online banks or credit unions do.
>> Read more: Mortgage Calculator: Estimate Your Monthly Payments
Bank of America mortgage refinance review
Like many lenders, Bank of America allows you to refinance an existing loan, which could reduce the rate of interest you pay on your mortgage loan.
Refinancing involves paying off your old loan with a new mortgage that ideally has a better interest rate and lower monthly payments.
>> Read more: Mortgage Refinance Calculator: How Much Could You Save?
Bank of America offers the following types of mortgage refinance loans:
- Fixed-rate refi loans (15, 20, and 30-year terms)
- Adjustable-rate refi loans (5/1, 7/1, and 10/1 terms)
- FHA and VA refi loans (fixed terms only)
- Cash-out refi loans
Pros & cons of BoA mortgage refinancing
- Bank of America has competitive rates for refinance loans.
- You can complete the application process online or in person at a local Bank of America branch.
- You have the option for a cash-out refinance if you want to tap into your home’s equity to use the money for big improvement projects, debt consolidation, or other important goals.
- Fees might be higher than with some online refinance lenders.
- It doesn’t have great customer service reviews for refinancing, either.
Eligibility & application: How to get a Bank of America home loan
Bank of America offers many kinds of loans, including some catering to low-income borrowers and those who need loans backed by the government due to poor credit.
With so many options, loans are available to a variety of borrowers.
In general, though, you’ll qualify for better terms if you have a credit score of at least 620 and a down payment of 10% to 20%—especially if you need a conventional loan and not an FHA or VA loan.
How to apply
Bank of America allows you to prequalify for a home loan online. This will allow you to get an idea of the rates you may receive.
You can also call 866-466-0979 or visit the website to schedule an in-person appointment with a loan officer to get assistance with the mortgage application process.
Same day pre-approval is possible for some Bank of America customers. The length of time it takes to close on your loan, however, will depend on many factors, including your financial eligibility and the documentation required to prove your income and assets.
Other info you need to apply
To apply for your home loan, you’ll need:
- Your contact details and Social Security number, so the lender can run a credit check.
- Proof of income, including tax returns, W2s or 1099s for the past two years, and pay stubs for the past 30 days. If you’re self-employed, you’ll also need a recent profit/loss statement.
- Bank and investment account statements to provide proof of assets.
- A copy of your signed Purchase and Sales Agreement.
Depending on the loan you apply for, your lender might require additional information.
Bank of America mortgage rates
Your rate for a Bank of America mortgage loan will vary based on which loan you take out, your repayment term, and personal factors such as your credit score and debt-to-income ratio.
If you visit Bank of America’s website, you can input information to see what rates you can qualify for. You can also lock in your rate online for 90 days. Some of the details you’ll need to input include:
- The purchase price of the property
- The down payment
- Your ZIP code
You can also expect to incur fees when applying for a Bank of America loan. These fees can vary based on which loan product you use.
Preferred Rewards customers (Bank of America or Merrill investment customers with a balance of at least $20,000) can qualify for a discount on their origination fees.
Buying a home is a big deal, so you’ll want to do your due diligence before choosing a mortgage lender. We recommend getting prequalified rates from at least three of the best mortgage lenders, so you can see which lender offers the rates and terms that fit your budget.
How we rated Bank of America mortgages
We ranked and rated 18 major mortgage lenders based on a weighted average of 12 data points to help you find the best loan options.
- BBB Rating (10%)
- Trustpilot Rating (5%)
- States Available (5%)
- Lender Fees (10%)
- Application Fees (10%)
- Number of Branches (5%)
- Number of Licenses and Registrations (5%)
- Number of Regulatory Actions (5%)
- Number of Mortgage Loan Originators (5%)
- Customer Support (20%)
- Zillow Rating (10%)
- Other Rewards and Extra benefits (10%)
You can read more about our ratings and methodology here.4.62 Bank of America Mortgage