Financial institution of America mortgage overview for 2020
With 66 million customers and 4,300 branches, Bank of America is definitely a major bank and mortgage lender.
In the "Big Banks" category, Bank of America scores best for customer satisfaction. Borrowers rate it "better than most" in the J.D. Power among mortgage lenders.
So if you're enjoying the experience of a major lender, make sure Bank of America is on your shortlist.
Just make sure you also compare the interest rates and transaction costs of some other lenders. The best mortgage lender varies by customer, so you need to look around to find yours.
Compare Bank of America mortgage rates
Bank of America mortgage rates tend to be below average.
Current Bank of America account holders get great deals. If you're a Preferred Rewards customer, you can expect $ 200 to $ 400 to be deducted from your origination fee, depending on your membership level.
Bank of America
Average 30-year interest rate, 2019
Monthly P&I payment *
Median loan costs, 2019
Median origination charge, 2019
However, some of the prices given are based on assumptions. Above all, you can assume that you will buy “discount points” when you close.
With discount points, you can pay more in advance for a lower mortgage rate. These are very common. However, you need to compare apples to apples to get the right deals ("credit estimates") from multiple lenders and see how Bank of America is developing.
The average tariff and fee data comes from public tariff and fee data sets required by the Home Mortgage Disclosure Act (HMDA).
* Monthly principal and interest payment based on a home price of $ 250,000 with a 20% decrease at an average 30-year interest rate of each company for 2019. Your own interest rate and monthly payment will vary.
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Bank of America mortgage refinancing rates
Bank of America's mortgage refinancing rates are generally average or slightly lower than other major lenders. However, your own refinancing rate depends on your credit rating, the type of loan program you are using and your current loan balance. So if you're considering mortgage refinancing with Bank of America, also check some other lenders' interest rates to find the best rate.
Bank of America mortgage review
Many borrowers will find a lot to like at Bank of America.
If you like an online or mobile application, you can do pretty much anything with this lender's website and Home Loan Navigator service.
If you prefer a personal experience, Bank of America has a strong branch network.
Note that not all branches contain loan officers. According to Bank of America, only 1,800 of its 4,300 bank locations are "credit centers". And neither of the two types of centers is evenly distributed across the country – so you can live far from your nearest one.
However, Bank of America outperformed other "big banks" in customer satisfaction, including Citi, PNC, Chase and Wells Fargo.
However, according to the Consumer Financial Protection Bureau (CFBP), customers are complained more seriously than some of his colleagues. This suggests that Bank of America's customer service could be a hit or miss.
Cooperation with the Bank of America
Bank of America's home loan website is modern, inviting, informative, and easy to navigate. It is as good as most and much better than many.
With the Home Loan Navigator online mortgage service, you can track the progress of your loan and electronically sign and upload documents in a secure environment.
You can even access this service through the lender's mobile banking app, so you can keep an eye on your mortgage application no matter where you are. Not all lenders offer this convenience.
These resources enable customers who want one to have a complete digital experience. And at the end of a telephone there is always a credit specialist available who will give you competent advice.
Bank of America mortgage pre-approval
If you are considering a bank of America mortgage, you will first get a pre-approval for the loan. A pre-approval shows you what type of loan and interest rate you qualify for and what amount you have approved to borrow. In contrast to prequalification, the lender must actually verify your information against documents during the pre-approval.
To get a pre-approval for a mortgage from Bank of America, you need to provide:
Copies of payslips showing your last 30 days of income, bank account numbers or two last bank statements, W-2 bank statements and signed personal and commercial tax returns from the past two years, down payment amount and desired mortgage amount
The company also runs a credit check to ensure that you meet the minimum credit requirements for the type of mortgage you need.
According to Bank America, borrowers should receive their official pre-approval letter within 10 days of submitting their application.
Bank of America customer service ratings
According to the customer survey by J.D. Power from 2019, Bank of America has an overall "average" reputation for customer service.
Mortgage origins 2019
Complaints per 1,000 mortgages
2019 JD rated power
Bank of America
Of course, customer service varies depending on your individual loan officer and your experience.
So if you see an exceptionally low rate of interest from Bank of America, don't let the average ratings put you off. Chat with a loan officer and see for yourself whether you would like to work with Bank of America.
Bank of America mortgage complaints
In 2019, Bank of America received 245 official mortgage complaints. To put this in perspective, Bank of America signed a total of 466,552 mortgage loans in 2019. She received approximately one complaint per 2,000 mortgage customers. That is a higher number than many other well-known mortgage lenders, but it is still quite low overall.
Mortgage loan products at Bank of America
Like most major banks, Bank of America has a good portfolio of mortgage products to choose from:
Fixed rate mortgages (FRMs) – In addition to the standard term of 30 years with a fixed interest rate, you can choose a term of 20 or 15 yearsVariable Rate Mortgages (ARMs) – Allows you to set your mortgage rate for the first five, seven or ten years. After that, it will fluctuate with the market FHA loan – With these loans secured by the federal government, you can buy with a deposit of only 3.5 percent, but they are paid monthly with mortgage insuranceVA loan – Only active or former service members and their surviving spouses are eligible. Those who are can buy below with $ 0 and no mortgage insuranceJumbo loan – If you want to borrow more than most types of mortgages allow (usually for loans over $ 510,400) Affordable mortgage with loan solution – With this proprietary mortgage, you can buy with only a three percent down payment and no mortgage insurance. However, there are caps on income and credit limits to qualify
Bank of America's internal loan, the Affordable Loan Solution, could be a good option if you have low to moderate income and minimal savings.
Obtaining a loan with such a low down payment and no mortgage insurance is rare, except for those that are eligible for VA loans.
Bank of America FAQ
Is Bank of America good for mortgages?
Bank of America is a great option for a mortgage or refinance. While it may not be customer service-oriented (it is rated "average" in JD Power's customer survey), it has lower interest rates on average than many other large lenders.
Is Bank of America offering home buyer loans for the first time?
Bank of America has a special mortgage and grant program that helps first-time home buyers. With the “Affordable Loan Solution” mortgage, you can buy with only 3% discount and NO private mortgage insurance. This is an advantage that is difficult to find elsewhere.
Bank of America also offers two down payment support programs that offer up to $ 7,500 or $ 10,000 for down payment and / or closing costs for buyers. These programs are available in select areas and can be combined with a low deposit mortgage to make home buying even more affordable for first-time buyers.
Does Bank of America pay the closing costs?
Bank of America has a program to help homebuyers with their purchase costs. Name "America's Home GrantIt offers up to $ 7,500 for one-time transaction costs. This is granted as a grant that does not require repayment. Speak to a Bank of America loan officer to find out if you qualify for this support.
What are the current mortgage rates at Bank of America?
In 2019, Bank of America had an average 30-year interest rate of just 4.05% self-reported data. In comparison, competing banks like Wells Fargo and Chase had average interest rates of 4.22%. However, each customer is offered a unique rate that depends on their creditworthiness, down payment and other factors. So you need to get a personalized quote from Bank of America to see if the prices are competitive for you.
What credit rating does Bank of America need for a mortgage?
Bank of America requires a minimum credit of 600 to qualify for a mortgage. This only applies to FHA loans. For a conventional Bank of America loan, you need a credit score of at least 620. A minimum of 660 is required for VA loans.
Why does Bank of America sell my mortgage?
It is common for lenders to sell the mortgages they take out. Like most other lenders, Bank of America does the front-end work of building mortgages on borrowers. Then it sells these loans to investors on the "secondary mortgage market", which brings in money to create new loans.
The fact that Bank of America sells your mortgage has no effect on your loan terms or interest rate. Changes to your mortgage can only be made if you refinance.
Where can you get a mortgage from Bank of America?
Anyone in the 50 states can get a mortgage from Bank of America online or by phone. And millions will be close enough to a branch to personally contact the lender.
Dark blue states have one or more Bank of America branches. Light blue states are not.
The coasts are generally well served, as are many southern states. But many in the center and north of the country have few or no stationary locations. As with all other lenders, your chances of a personal experience depend on your zip code.
For others, this bank's online resources are more than sufficient to submit and track their home loan application.
Is Bank of America the Best Mortgage Lender for You?
Overall, Bank of America does very well compared to many other mortgage lenders. Customer satisfaction is particularly impressive – especially for a lender in the “Big Bank” category.
The only real limitation is the relatively high number of complaints filed against the Bank of America with the CFPB. However, keep in mind that “high” is still only two out of 1,000 customers.
If the Bank of America price is right for you, this mortgage lender is a great option. Find out if this is the right choice by comparing the interest rates and transaction costs of some different lenders.
Check your new tariff (July 26, 2020)