Bank of America Mortgage: A Comprehensive Review
Why Choose Bank of America Mortgage?
Bank of America is a well-established financial institution that offers a wide range of mortgage options, making it an attractive choice for homebuyers. With its extensive network of branches and online platform, BofA provides a seamless mortgage experience. But what sets it apart from other lenders?
Key Benefits
- Generous Home-Buying Assistance: Bank of America offers grants of up to $7,500 toward closing costs and up to $10,000 toward down payment assistance for qualified buyers in many states.
- Medical Professional Program: Borrowers in the medical field can make lower down payments and exclude student loans from debt limits, with the option to close on a loan 90 days before starting a new position.
- Preferred Rewards: Existing customers may qualify for an origination fee or interest rate deductions by signing up for Preferred Rewards.
Mortgage Options
Bank of America offers a diverse range of mortgage products, including:
- Conventional loans
- FHA loans
- VA loans
- Purchase mortgages
- Refinance loans
- Cash-out refinance loans
- Fixed-rate mortgages
- Adjustable-rate home loans
- Jumbo loans
- Medical professional loans
- HELOCs (Home Equity Lines of Credit)
What’s Not Offered
While Bank of America has an extensive mortgage portfolio, it doesn’t offer:
- USDA loans
- Interest-only mortgages
- Lot loans
- Construction loans
- Guest house loans
- Second home loans
- Nonqualified mortgages
- Investment property loans
- Energy efficient mortgages
- Renovation loans
- 1% down payment mortgages
- Buydown loans
- Bridge loans
- Manufactured home mortgages
- Piggy-back loans
- ITIN mortgages
- Home equity loans (although fixed-rate HELOCs are available)
First-Time Homebuyer Resources
Bank of America’s website features an expansive first-time homebuyer section, offering educational articles, tips, tools, FAQs, and a breakdown of loan options. You can easily find contact information, schedule an appointment, or launch a chat to get started with a digital loan application.
Home Equity Line of Credit (HELOC)
BofA’s HELOC allows you to draw cash from your home’s value with a variable-rate loan. You can convert all or a portion of the HELOC to a fixed rate, making it similar to a home equity loan. There are no application fees, closing costs, or annual fees, and you can apply online or visit a bank location.
Mortgage Rates and Costs
Bank of America’s mortgage rates are competitive, with a lower-than-median mortgage rate of 6.25% and a lower-than-median total loan cost of $5,525.11 in 2023. You can easily find mortgage rates on the BofA website, and update them by entering a purchase price, down payment, and ZIP code in the calculator.
Digital Mortgage Experience
Bank of America’s online platform allows you to apply for a mortgage, prequalify, and access resources and tools. You can even schedule a mobile closing service to sign the loan. With its “Digital Mortgage Experience,” BofA offers a convenient and streamlined mortgage process.
Customer Satisfaction
Bank of America is highly rated for customer satisfaction in the latest J.D. Power mortgage lender survey. Its website features a range of resources, including calculators, educational articles, and FAQs, making it easy to navigate the mortgage process.
Methodology
Our review of Bank of America Mortgage is based on a quintile scoring system, evaluating lenders in five primary categories: interest rates, affordability, loan costs, rate transparency, and online features. We also analyze regulatory actions and consumer complaints to ensure a comprehensive review.
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