Perhaps the most notable aspect of Bank of America’s mortgage menu is the availability of programs to help with down payments and closing costs. This makes Bank of America an attractive option as 澳洲幸运5官方开奖结果体彩网:a mortgage lender for low- or moderate-income homebuyers. In addition, the bank’s mortgage origination and servicing operations enjoy high scores for customer satisfaction.

However, Bank of America’s mortgage program does have its flaws. For instance, the bank offers no USDA or mobile home loans. 🐻Plus, its mortgage rates are higher than average, and the bank isn’t transparent about lending fees.

Pros Explained

• Financing options for low- and middle-income borrowers: Borrowers with limited funds can qualify for up to $10,000 toward a down payment, up to $7,500 toward closing costs, and a down payment as low as 3%.
• Availability of mortgage pre-qualification: Bank of America says homebuyers can quickly pre-qualify online for a mortgage.
• High ratings for customer satisfaction: Customer satisfaction studies by market research company J.D. Power assign higher-than-average scores to Bank of America as an originator and servicer of loans.
• Financial strength as second-largest U.S. bank based on assets: As of March 31, 2024, Bank of America’s assets exceeded $2.5 trillion, a number eclipsed only by Chase Bank ($3.5 trillion).

Cons Explained

• No USDA mortgages: A USDA mortgage enables a homebuyer in a rural area to finance up to 100% of a home purchase. The federal government guarantees up to 90% of the principal of a USDA loan to encourage private lenders to extend mortgages to rural residents.
• No non-qualified mortgages: Non-qualified mortgages are designed for buyers who don’t meet standards for traditional lending programs, such as self-employed people and retirees. This option isn’t available at Bank of America, though.
• Limited transparency on mortgage fees: Bank of America lists general information about its mortgage fees but not specifics.

Types of Mortgage Loans Offeꦍred by Bank🦄 of America

澳洲幸运5官方开奖结果体彩网: ✤Bank🦩 of America’s mortgage offerings include:

• Fixed-rate: With a fixed-rate mortgage, your interest rate stays the same throughout the loan term. As a result, your monthly payment of principal and interest doesn’t change during the term. Fixed-rate mortgages with 30-year, 20-year, and 15-year terms are available from Bank of America.
• Adjustable rate: If you take out an 澳洲幸运5官方开奖结果体彩网:adjustable-rate mortgage (ARM), the interest rate may increase or decrease during the loan term, affecting your monthly mortgage payment. Bank of America provides 10-year, seven-year, and five-year ARMs with rates that adjust every six months.
• Jumbo: 澳洲幸运5官方开奖结果体彩网:A jumbo loan exceeds lending limits set by the federal government. Through the end of 2024, loan limits were up to $766,550 for a single-family home in most places and up to $1,149,825 in designated high-cost areas.
• FHA: A mortgage backed by the 澳洲🥀幸运5官方开奖结果体彩网:Federal Housing Administration (FHA) generally offers a low down payment, low closing costs, and looser credit standards than traditional loans do.
• VA: Available to veterans, service members, and eligible surviving spouses, a 澳洲幸运5官方开奖结果体彩网:VA home loan guaranteed by the U.S. Department of Veterans Affairs requires no down payment or private mortgage insurance and provides limited closing costs.
• Affordable Loan Solution mortgage: Geared toward low- to moderate-income borrowers, Bank of America’s Affordable Loan Solution mortgage offers down payments as low as 3%.

Bank of America Mortgage Loan Features

Several features of Bank of Am𓄧erica’s mortgage program stand out. Among them aಞre:

• Grants to offset home-buying costs: These include up to $10,000 to put toward the down payment or 3% of the purchase price, whichever is lower; up to $7,500 for eligible closing costs in certain markets; and a down payment as low as 3% for eligible mortgages.
• Calculators: Bank of America's website provides several home ownership calculators, including a home affordability calculator, mortgage cost calculator, and mortgage refinance calculator.
• Discounts: Depending on their status in Bank of America’s Preferred Rewards program, members are eligible for several discounts. Among the perks are a $600 discount on the loan origination fee and a 0.25% or 0.375% reduction in the interest rate.

How to Apply for a Bank of America Loan

ꦑIf you determine that Bank of America is the right mortgage lender for you—or if you want to compare its rates with other lenders—follow these five steps. 

1. Decide how to apply: With Bank of America, you can apply for a loan in person, online, or through its mobile app. In 2022, the bank reported that 81% of its mortgage applications were started through its website or mobile app.
2. Collect documents: When you apply, you’ll need to supply documents to prove details such as your income, employment, and assets. To help you prepare, Bank of America provides a of required documents. 
3. Pre-qualify for a loan: To obtain a , you can fill out a request online or at a local branch. If you’re a current Bank of America customer, you can log in to your online account to speed up the process. 
4. Find a home: You can shop for a home on your own, or you can use to find homes and even get connected to bank-affiliated real estate brokers. 
5. Apply for a mortgage: Once you find the right home, you can make an offer and fill out a mortgage application. You’ll be asked to submit your documentation and agree to a credit check. If your application is approved, the lender will work with you to select a closing date.

Bank of America’s Rates and Fees

The annual percentage rates (APRs) for Bank of America mortgages tend to be higher than average. While you can find current APRs on Bank of America’s website, you can’t find specifics about lending fees, as they’re not pub🐟licly disclosed.

It’s worth noting that you must provide personal information to pre-qualify and eventually learn more about rates and🔯 fees. When you fill out the pre-qualification application🌺, you must provide information such as your name, phone number, email address, street address, Social Security number, date of birth, and citizenship status.

Online Experience

In our grಞading of the onꦿline mortgage experience at Bank of America, we awarded a score of 3 out of 5.

澳洲幸运5官ꦉ方开奖结果体彩网: 💯Features of the online experience include:

• Online application
• Online application assistance
• Digital application tracking
• Online rate listings
• Online chat
• Several mortgage calculators
• Relatively easy navigation
• Relatively good design
• Numerous tools and resources for homebuyers

One downside of thꦡe online experience is the inability to close your mortgage digitally.

Customer Service

Customer serv🌃ice options at Ba✃nk of America include telephone, Facebook, and X.

Customer Satisfaction

Customer satisfaction at ꧅Bank of America is a mixed bag.

In the J.D. Power 2023 U.S. Mortgage Origination Satisfaction Study, Bank of America earned an above-average score of 747 out of 1,000. Similarly, Bank of America received an above-average score of 646 out of 1,000 in the J.D. Power 2024 U.S. Mortgage Servicer Satisfaction Study.

On the downside, on the Trustpilot review website, Bank of America gets only 1.3 out of 5 stars based on a slew of complaints about issues such as poor communication and long wait times when contacting customer support.

Federal regulators aren’t entirely happy with Bank of America either. Here’s a sampling of the bank🌜’s penalties in recent years:

• A $12 million penalty in 2023 from the CFPB for submitting false mortgage lending information to the federal government
• A more than $200 million penalty in 2023 from the CFPB and the Office of the Comptroller of the Currency (OCC) for illegally charging “junk” fees, withholding credit card rewards, and opening fake accounts
• A $225 million penalty in 2022 from the CFPB and OCC for mishandling the distribution of state unemployment benefits
• A 2022 agreement between the U.S. Department of Housing and Urban Development (HUD) and Bank of America to resolve allegations about mortgage discrimination based on gender and family status

Account Management

Once you’🐠ve taken out a mortgage, you can manage your account, make payments, and track your loan p🐎ayoff progress through Bank of America’s website. The company also offers a mobile app for managing your mortgage.

Other Banking Services and Loans Offered by Bank of Am🌠erica

As the second 🦄largest bank in the U.S., it should come as no surprise that Bank of America provides a wide array of services and loans. Among them are:

• Checking accounts
• Savings accounts
• Certificates of deposit (CDs)
• Credit cards
• Home equity loans
• Auto loans
• Personal loans
• Business loans
• Commercial real estate loans
• Investment accounts
• Retirement accounts such as 401(k)s and IRAs

🌠 Compare Bank of America With Other Mortgage Loan Lenders

The Bottom Line

If you’re in the market for a mortgage from a big bank, Bank of America is worth checking out. This is especially true if you’re a low-income or mod🅠erate-income homebuyer who needs help with the down payment and closing costs, as the bank offers a few assistance programs. It’s also a s🥂olid choice for those seeking online access to mortgage calculators and financial tools.

Bank of America may not appeal to some borrowers, though. Its customer reviews on Trustpilot are generally bad, and t🌌he bank doesn’t let you digitally close your mortgage. Plus, it’s not transparent about lending fees for mortgages, and its mortgage interest rates are higher than average.

Frequently Asked Questions (FAQs)

What Credit Scor꧂e Is Ne🅘eded for a Bank of America Mortgage?

Bank of America genera𝓀lly requires a minimum credit score of 660 to qualify for 🅠a 30-year, fixed-rate mortgage.

Does Bank of America Require Collateral?

A mort⭕gage is a secured loan, meaning t﷽he home serves as collateral.

Who Is the #1 Mortgage Lender in the U.S.?

Based on the number of loans originated in 2023, United Wholesale Mortgage is the top mortgage lender in the U.S. But as judged by customer satisfaction according to J.D. Power, Fairway Independent Mortgage ranks as the top mortgage lender. Our pick for the best mortgage lender is Rocket Mortgage.

What Other Loan Products Does Baඣnk of America Offer?

Bank of America offers other loans, including home equity loans, auto♉ loans, personal loans, and business loans🍒.

How We Review Mortgage Lenders

In March 2024, we conducted a consumer survey, collecting 500 responses from current or prospective homebuyers and mortgage borrowers to understand what is most important when selecting a lender. We asked them 41 questions about the home-buying and mortgage-shopping experience and learned what features and services were most important to them. Our team of researchers an🌳alyzed the results, and this information fueled our list of 38 mortgage lenders and 55 criteria for our rubric.

We then collected over 2,000 data points, surveying mortgage lenders and collecting data via websites and customer service between May 31 and June 28, 2024. To develop our list of the best mortgage l༒enders, we weighted 36 of the 55 individual criteria, giving higher weight to those criteria that mean the most to borrowers. The score for each co💟mpany’s overall star rating is a weighted average of those criteria in the following categories:

• Customer Experience: 48%
• Operational Features: 16% 
• Reputation: 14%
• Loan Types: 11%
• Loan Costs and Requirements: 11%

Read more about our process in our full 澳洲幸运5官方开奖结果体彩网:mortgage lender methodology.