01 Jun Bank of America Review
With a diverse range of financial services, Bank of America is one of the nation’s largest banks. Checking accounts, savings accounts, credit cards, mortgages, home equity lines of credit, auto loans, and business banking are among the products available.
The corporation owns about 4,200 retail financial facilities, comprising 1,800 loan centers, 2,200 Merrill Edge investing locations, and 1,500 business centers. The bank has approximately 16,300 ATMs. Additionally, the bank operates in about 35 other countries and has branches in 37 states. While this is convenient, its accounts have hefty fees and low-interest rates.
This Bank of America Mortgage Review will analyze the account fees, rates, and services in detail.
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Bank of America Overview
Formerly known as Bank of Italy, Bank of America was a San Francisco-based bank created by Amadeo Peter Giannini to help immigrants who other financial organizations turned down. What started as a small local bank in San Francisco in 1904 grew to become California’s sole statewide bank. It opened offices in Italy and other U.S. cities, and by 1945, it had grown to become the largest bank in the world.
Bank of America became the first bank to operate from coast to coast after combining with NationsBank in 1998. Charlotte, North Carolina, is now the bank’s headquarters. It features a comprehensive range of banking, small business, and wealth management services and a new logo unveiled in late 2018.
Bank of America has excellent digital features, an extensive branch network, and many ATMs. However, if you wish to avoid bank fees or earn a high-interest rate, you should bank somewhere else.
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Bank of America Home Loan Types and Rates
Bank of America has a range of lending options for those looking to buy or refinance a house. The bank also offers government loans, low-down-payment programs, and home equity loans in addition to conventional and jumbo loans. Among its products are the following.
Fixed-Rate Mortgages
A fixed-rate mortgage provides you with a level of predictability that might make budgeting easier. Your Bank of America mortgage interest rate and total monthly principal and interest payment will remain the same for the loan duration.
Fixed-rate mortgages are an excellent option if you have the following circumstances:
- If you believe interest rates will climb in the coming years and want to keep your present rate.
- Make a long-term commitment to your home.
- You prefer the certainty of a constant principle and interest payment.
Adjustable-Rate Mortgages (ARMs)
ARMs, often known as variable-rate mortgages, feature an interest rate that fluctuates based on changes in a financial index linked to the loan. In general, if the index rate rises or falls, your monthly payment will rise or fall as well.
The interest rate on ARM loans is usually named by the fixed-rate duration and how often the interest rate is adjusted. For instance, in a 5y/6m ARM, the ‘5y’ denotes a fixed interest rate for the first five years, while the ‘6m’ indicates that the interest rate will be adjusted every six months after that.
VA Loan
The program entitles qualified buyers to buy a home with no money down and no mortgage insurance. All military members, including those who have retired and their surviving spouses, are eligible.
Also Read: The Ultimate Guide to a VA Loan
FHA Loan
These FHA-backed loans allow you to buy a home with as little as a 3.5 percent down payment, but they come with monthly mortgage insurance payments.
Jumbo Mortgage
A special kind of loan called a jumbo loan permits a borrower to purchase a home whose value exceeds the Federal Housing Finance Agency’s maximum conforming loan limitations (usually over $647,200).
For primary residences, vacation or second homes, and investment properties, large mortgages are available in a range of terms, including fixed-rate and adjustable-rate loans.
Compared with a conventional loan, jumbo loans have higher interest rates, stricter underwriting standards, and higher down payments.
Affordable Loan Solution Program
This unique mortgage allows you to buy a home with just a 3% down payment and no mortgage insurance. However, you must meet certain income and debt requirements to qualify.
Doctor Loans
Owning a property while pursuing your job objectives and paying off student loans might be difficult, but Bank of America can assist you in realizing your dream of owning a home.
Bank of America offers Doctor Financing, an innovative home loan program for licensed doctors and dentists, medical residents and fellows, and other medical professionals who meet specified criteria.
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Bank of America Pros and Cons
Pros of Bank of America
- The bank has around 4,300 retail banking facilities and over 16,800 ATMs spread across the country.
- It features a mobile banking app that has won awards, and it has made significant investments in digital technology.
- Customers can use Zelle, a person-to-person payment service that allows them to send money straight to friends and family’s bank accounts.
- Artificial intelligence-powered virtual assistant. Erica simplifies budgeting, financial management, and cost tracking.
Cons of Bank of America
- Fees can be avoided, but they can quickly mount for consumers who fail to meet specific criteria.
- The yields on savings and certificates of deposit are poor.
- Branches are being shuttered, and certain country sections no longer have access to an actual bank presence.
- Overdraft charges could cost customers up to $140 per day unless they have the SafeBalance account that prevents them from overdrawing.
Bank of America Application Process
Homebuyers can apply for a mortgage using Bank of America’s Digital Mortgage Experience utilizing the company’s website or mobile app. If you already have an account with Bank of America, much of the application will be pre-filled, and most users receive conditional approvals the same day.
Following the submission of your application, Bank of America’s Home Loan Navigator app allows you to watch its progress and view any outstanding “must-do’s” that need to be completed to keep the process moving forward. Home Loan Navigator will enable you to sign and submit various loan documents online. You can also choose to receive your disclosures digitally, making the entire process much more manageable.
If you’ve had trouble qualifying for checking accounts in the past, have a “limited credit history,” or are depositing more than $100,000 into an account, you should go to a branch instead of trying to sign up online. You’ll also need to give personal information, just as you would when opening a bank account.
Bank of America Refinancing
If homeowners are looking to lower their interest rate or monthly payment, they can refinance their existing mortgage loan or utilize the equity in their home. Bank of America refinance options available include:
- Rate and term refinance
- Refinance with cash out
- Fixed-rate refinance
- Adjustable-rate refinance
- FHA & VA refinance (available only to existing Bank of America home loan customers)
You may learn more about what to expect during the mortgage refinancing procedure on the bank’s website. Customers can learn about the stages involved, the meaning of mortgage phrases, and the documents they should bring with them.
Since every home loan situation is unique, Bank of America does not estimate how long the process might take. Your balance determines your eligibility for a loan at the time you apply.
Bank of America Alternatives
It’s critical to get loan estimates from multiple lenders because interest rates and fees can vary widely among lenders. You should also consider the type of lenders, like credit unions, local and regional banks, and online lenders. Following are some of the options available.
Navy Federal Credit Union
One of the most trusted lenders for veterans, the Navy Federal Credit Union (NFCU), can offer much more than just the VA loan program when it comes to refinancing a mortgage. With Military Choice, rate match guarantee, and rate lock initiatives, NFCU is one of the top veterans’ mortgage refinance companies.
Nationwide Home Loans
Nationwide Home Loans can’t be surpassed for all-in-one service as an in-house lender with loan kinds spanning the real estate spectrum, custom term capabilities, and a best-rate guarantee. You’ll enjoy a consulting experience and will receive terms tailored to your specific goals at the lowest fees and rates.
Bank of America Transparency
On Bank of America’s website, customers can examine interest rates based on the loan amount, down payment, and zip code. The bank’s user-friendly website can also provide basic information regarding the mortgage loan process. Getting a clear answer to anything that wasn’t on the internet, on the other hand, proved difficult.
To get a quote, refinancing customers must speak to a lending professional during regular business hours. However, the bank offers an online calculator to help buyers estimate closing costs. According to a banking expert, this approach necessitates a tough credit draw because your credit score influences rates and fees.
The bank does not specify the minimum credit scores required for each loan product. However, a minimum credit score of 620 to 660 is required for traditional loans.
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The Final Verdict—Bank Of America Mortgage Review
Customers who seek the convenience of a nearby bank location or ATM should consider Bank of America. Savings accounts and CDs have low-interest rates, which negates this convenience. Customers can earn more rewards with their balances through Preferred Rewards, but they may be better off saving at other banks with more competitive interest rates.
Bank of America offers good options for those who value convenience over higher interest rates. You might also find Bank of America to be an ideal choice if:
- You wish to deposit your money with a large, well-known bank.
- You’re not afraid of negotiating a complicated set of regulations.
- You’re well-versed in the various costs and how to avoid them.
- You don’t care as much about getting a decent return on your savings.
- You need a bank that provides a diverse range of financial services.
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