Bank of America Lender Review: Get Mortgage and Auto Loans with Competitive Rates

As one of the biggest banks in the country, Bank of America is a popular choice for mortgages and car loans.
Last updated Mar 20, 2020 | By Kat Tretina
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Shopping for a loan can be overwhelming. There are hundreds of lenders out there, all offering different products, interest rates, and benefits. Where do you even begin?

If you’re one of the millions of people who has a checking or savings account with Bank of America, you might be thinking of applying for a loan through your local branch. But before you submit a loan application, it’s important to do your research to make sure you’re selecting a dependable lender — and getting a good deal on your loan.

This guide offers the insights you need to make an informed decision about Bank of America.

In this Bank of America lender review:

Is Bank of America a good bank?

Bank of America was founded in 1998. Today, it serves more than 66 million consumer and small business clients. It’s the second-largest bank in the country, based on its assets.

Despite its name, Bank of America has a global presence, operating in more than 35 countries around the world.

What sets Bank of America apart from other banks is the comprehensive banking services it offers. Consumers and business owners can open up savings accounts, checking accounts, credit cards, and apply for loans. Bank of America also has wealth management services for financial planning and investing.

You can get personalized insights and guidance to help you with your finances with Bank of America’s Erica app. This app lets you manage your banking, bill payments, and credit card payments under one umbrella. It also lets you track your spending and view recurring charges quickly and easily. In fact, J.D. Power’s 2020 Retail Banking Advice Satisfaction Study, ranked Bank of America second out of 17 banks for providing targeted and helpful financial advice.

What loan products does Bank of America offer?

Although you can’t take out a Bank of America personal loan — Bank of America doesn’t offer them — the bank does have a range of other loan products:

  • Home loan: If you plan on buying a home, you can take out a mortgage through Bank of America.
  • Mortgage refinancing: If you already have a mortgage, you can refinance to lower your monthly payment or pay off your mortgage faster.
  • Home equity loan: If you have equity in your home, you can borrow against that equity to pay for home improvements, your child’s education, or another major expense.
  • Car loan: You can borrow money to purchase a new or used vehicle from a dealership or private seller, or you can refinance an existing auto loan to lower your interest rate or monthly payment.

Home loans from Bank of America

Bank of America has several different mortgages for homebuyers. Whether you’re a first-time buyer looking for a Federal Housing Administration (FHA) loan with a low down payment or an experienced homeowner applying for a jumbo loan to buy your dream house, Bank of America likely has a home loan to meet your needs.

Bank of America has the following mortgage options:

  • Fixed-rate mortgages: Your mortgage will have the same interest rate for the life of the loan
  • Adjustable-rate mortgages: Your interest rate may fluctuate over the length of your loan.
  • Jumbo loans: If you need a larger loan amount, you may need to take out a jumbo loan.
  • Affordable Loan Solution mortgage: First-time homebuyers can qualify for a mortgage with a down payment as low as 3%.
  • Government loans: Loans backed by the FHA and the U.S. Department of Veterans Affairs have low down payment requirements for eligible borrowers.
Home Purchase Price: $250,000

Down Payment: $50,000


Rate APR Points Monthly Payment
30-year fixed 3.75%* 3.886%* 0.736* $926
15-year fixed 2.875%* 3.136%* 0.898* $1,369
5/1 ARM variable 2.625%* 2.995%* 0.685* $803

Note: These rates are valid for zip code 32836. Individual rates and loan amounts may vary based on your location and creditworthiness.

Mortgage refinance from Bank of America

If you own your home and currently have a mortgage, refinancing can be a smart way to save money, pay off your mortgage faster, or even get cash to pay for a major expense.

Bank of America has four mortgage refinancing loans:

  • Fixed-rate refinance loan: With this option, you have a set interest rate for the length of your loan.
  • Adjustable-rate refinance loan: Your interest rate may fluctuate over time with an adjustable-rate refinancing loan.
  • FHA and VA refinance loans: Government-backed loans have low down payment options and flexible credit and income requirements.
  • Cash-out refinance loans: If you have equity in your home, you could get cash when you close your refinance loan.
Home Value: $250,000

Current Loan Balance: $200,000


Rate APR Points Monthly Payment
30-year fixed 4.25%* 4.405%* 0.970* $984
15-year fixed 3.375%* 3.635%* 0.919* $1,418
5/1 ARM variable 2.75%* 3.052%* 0.906* $816

Note: These rates are valid for zip code 32836. Individual rates and loan amounts may vary based on your location and creditworthiness.

Home equity loans from Bank of America

If your home is worth more than you currently owe on your mortgage — meaning you have equity in your home — then you may be able to qualify for a home equity line of credit (HELOC) from Bank of America.

With a HELOC, you have access to a revolving line of credit that you can use to pay for major expenses. Whether you have medical bills, college tuition expenses, or home renovation plans, you can use the money to cover the costs.

HELOCs are secured loans, which means your home serves as collateral, so they tend to have lower interest rates than other forms of loans.

With Bank of America’s HELOCs, there are no application fees, closing costs, or annual fees. And, you can apply online in as little as 15 minutes.

Loan amount Up to $1 million for primary residences
Loan term Up to 30 years
APR 1.740% to 3.650%*
Credit needed Not listed

Note: These rates are valid for zip code 32836. Individual rates and loan amounts may vary based on your location and creditworthiness.

Car loans

You can use a Bank of America car loan to buy a vehicle from a dealership or private party seller. Or you can refinance an existing car loan to lower your interest rate or reduce your monthly payment. There are no application fees or prepayment penalties.

Although Bank of America auto loans are available in all 50 states, there are some restrictions to keep in mind:

  • Vehicles older than 10 years or that have more than 125,000 miles are not eligible for financing
  • Commercial, salvaged, gray market, or lemon law vehicles are not eligible for financing
  • The minimum amount you can finance is $7,500—$8,000 if you live in Minnesota

New Car (Dealer) Used Car (Dealer) Refinance
APR Starting at 2.69%* Starting at 3.09%* Starting at 3.69%*
Loan Amounts $7,500 and up ($8,000 in Minnesota) $7,500 and up ($8,000 in Minnesota) $7,500 and up ($8,000 in Minnesota)
Loan Terms 12 to 75 months 12 to 75 months 12 to 75 months

Note: These rates are valid for zip code 32836. Individual rates and loan amounts may vary based on your location and creditworthiness.

Bank of America offers loan terms of 12 to 75 months. However, the online application only allows you to select a term of 48, 60, or 72 months. To select a different loan term, contact your loan officer when you submit your loan application.

What Bank of America customers are saying

The Better Business Bureau issued Bank of America an A+ rating. On TrustPilot, there are more than 170 reviews, but the bank has a TrustScore of just 1.6. Although that’s quite low, it should be noted that many of the negative reviews are related to issues with checking and savings accounts, and not loans or mortgages.

On CreditKarma and Consumer Affairs, consumers give Bank of America average scores for its lending products.

FAQs about Bank of America loans

Does Bank of America offer personal loans?

If you already have a checking or savings account with Bank of America, you may be thinking about applying for a Bank of America personal loan too. But we’ve got bad news: This bank doesn’t offer them. If you want to take out a personal loan, you’ll have to look for another lender. Here are some of the best personal loan lenders in 2020.

Does Bank of America offer student loans?

Previously, Bank of America did offer student loans, but it’s no longer an education lender.

Is Bank of America in all 50 states?

Yes, Bank of America is available in all 50 states.

Is Wells Fargo or Bank of America better?

Both Wells Fargo and Bank of America are two of the nation’s largest banks. If you’re looking for a loan, deciding which is better for you depends on your credit score and your needs. It’s a good idea to shop around and compare rates from multiple lenders to find the best loan for you.

Can I chat online with Bank of America?

Yes, online chat is available with certain products and services. When chat is available, a chat link will appear on the right side of the screen.

The final word on Bank of America loans

Although you can’t apply for a Bank of America personal loan, Bank of America does have a wide range of other loan products for your financial needs. Whether you’re purchasing a home, renovating your house, or buying a new car, Bank of America can help you achieve your goals.

Looking for a home improvement loan? Check out our list of the best home improvement lenders.

*All rates and fees are accurate as of March 18, 2020.

Great For Loans Up to $50,000

Benefits

  • Loans from $1,000 to $50,000
  • Min. Credit Score: 600
  • APR: 3.49% - 35.99%
  • Comparing Rates Does Not Affect Your Credit Score
  • APR as of April 2020