Bank of America Refinance Review

Ask Bill, Tuesday, March 16 2010 | 16 Comments

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Should I refinance my home with Bank of America?

Question:

Should I refinance my Bank of America loan. Interest rates are low and I am considering refinancing my loan, and don't know if I should stay with Bank of America for my refinance or use a new mortgage loan lender.

Thanks Bill.

Answer:

Sure thing and thanks for your question on Bank of America and refinancing your home.

In our opinion Bank of America appears to be a good choice to refinance your home with. As you can see on our lender profile page of Bank of America Profile, the positives are that they have convenient locations, a variety of loan products to choose from and competitive rates. However, you may want to consider that they tend to have high fees, and are reported by many Bills.com users as having a lengthy loan process.

When considering to refinance your home you need to consider the costs of doing the loan to determine whether it makes sense to do so. It is always a good idea to shop around and compare lenders to ensure you are getting the best deal. Bills.com makes it easy for you to find the best deal by visiting our Refinance Savings Center, where you can get free quotes from up to four different lenders.

If you are looking into a mortgage or specifically a Bank of America Refinance to lock in a low or fixed rate mortgage, consider the following:

Are your ARM rates rising above market rates? As interest rates increase, ARM loan payments do too. Homeowners concerned about payments, and whose rate is higher than current fixed mortgage interest rates, might consider a refi mortgage. Many economists forecast basically stable interest rates through Thanksgiving or so, but with the amount of uncertainty in financial markets, there's no telling. You can begin the process with a mortgage lender and have him or her watch rates for you to establish a good time to lock your loan.

Is refinancing affordable? Refinancing involves expenses that can total around 2 percent of the total loan amount. Typically, financial advisors suggest a refi mortgage is worthwhile if the savings on payments will pay for the refinancing costs within two years. Homeowners can calculate their own "break-even" date by dividing the up-front cost (the figure on the Good Faith Estimate form) by the anticipated monthly savings. The answer is the number of months it will take to pay off the refinance -- and sooner is better.

Have you grown roots? Homeowners who plan to stay in their home for a long period of time might find that a refi mortgage makes sense. If you have a long term left on your mortgage payments, and your rate is higher than market rates -- or you have an ARM or balloon-payment loan and want the security of a fixed rate -- you'll likely meet the "break-even" criteria outlined above.

Rates only part of the equation
All of these and many others make up the list of reasons homeowners may choose to refinance their homes. Current interest rates are only part of the equation. Establish your goals, learn about your options, and make the decision that's best for you and your timetable. Before you decide to refinance with Bank of America take these factors into consideration.

Be sure to read our Bank of America Review and Profile on Bills.com.

I hope this information helps you Find. Learn & Save. Good luck with your bank of america lender refinance.

Best,
Bill
www.bills.com/blog/

Also, make sure to get a free financial health check-up with Bills IQ!

16 Comments

Post a Comment
Thanks for the helpful information about the mortage and refinance process and Bank of America refinance stuff too. I will check them out, since I agree that rates are real low.

Posted by William I on 03/17/2010 11:39

You are welcome William. Good luck with your refinance and let us know how it goes with Bank of America.

Posted by Bill on 03/17/2010 11:39

So, should I refinance today? rates for bank america and everyone seem to be low and maybe risiing?

Posted by Patrick S. on 03/29/2010 10:38

I doubt we will ever see mortgage rates lower than we enjoy now in March 2010.

Posted by Bill on 03/29/2010 12:52

I'm a bank of America customer but I don't have my mortgage thru them. Should I refinance to get my loan with bank America?

Posted by Bulls fan on 04/09/2010 04:40

Thanks for your question on Bank of America and refinancing. The answer shouldn't really lie in where you bank but in where you can get the best mortgage and where the refinance process is the best for your needs. I would recommend applying with Bank of America and also with a few mortgage brokers and be very clear upfront what you are trying to accomplish (e.g. cash out, lower rate or term, etc) and see who has the best mortgage products for your refinance needs. Good luck. Bill

Posted by Bill on 04/09/2010 05:59

What is the best current rate if I refinance with Bank of America Refinance loan instead of doing a Chase Mortgage Refinance or somewhere else? Is one better or worse? Thank you, I want to refi to get a lower payment a reduce my interest rate.

Posted by rambatan73@gmail.com on 07/25/2010 15:49

Thanks for your question/ comment on interest rates and refinance options. First of all, interest rates vary with changes in economic conditions, but the current rate on a 30 year fixed mortgage is about 4.6%. If you just flat out want the lowest rate, a 3/1 ARM is about 3.5%, but make sure that you are careful if you don't get a fixed rate mortgage and understand the future trade-offs and how long you plan to live in your home. Both Chase Mortgage and Bank of America Mortgage offer 30 year mortgage products and ARM products, but which loan and which lender you choose will depend on your specific situation (including your credit, DTI, loan-to-value and other underwriting criteria). Be sure to shop around and check out the lenders in the Bills.com network by applying online here at Bills.com or check out the cool new online app process at Home-Account.com. Good luck comparing Bank of America and Chase and all of your loan options. bills.com

Posted by Bill on 07/25/2010 15:55

OK, so I tried to refinance my mortgage with bank of america and they turned me down because I didn't have perfect credit and i did not have enough equity in my home. Where else can I get approved for a refinance mortgage loan fast?

Posted by stephanie T on 08/01/2010 10:15

Have you considered HARP? See the Bills.com resource HARP Mortgage Refinance to get started with the Home Affordable Refinance Program as an alternative to a Bank of America refinance. You can also read about how to improve your Mortgage options and then apply with the list of pre-screened Bills.com lenders to see if you can qualify for a mortgage refinance online.

Posted by Bill on 08/02/2010 11:18

I am a Bank AMerica banker and I keep hearing about a national program to help people refinance at a lower rate. Should I refinance my bank america mortgage today, or wait for some federal program to refinance me?

Posted by Bank America Customer on 08/18/2010 07:53

Thanks for you question. In our opinion, if you can qualify for a refi, then today's rates are the lowest that we have seen in a lifetime. It's a great time to lock in a low rate and payment. There is certainly quite a bit of speculation that rates in America may move lower, and the Fed is buying bonds in a second effort at quantitative easing... in large part to get extremely low interest rates which would lower the cost of borrowing and further reduce American families' monthly obligations. However, rates could rise too. Make sure that you don't commit to a pre-pay penalty and talk to a trusted mortgage advisor about refinance options today and in the future, whether that is with Bank of America or with another mortgage refinance lender. Good luck! bills.com

Posted by Bill on 08/18/2010 11:16

Is now the time to refinance my bank of america mortgage? Any chance that mortgage rates will go lower or that Bank of America will have better loan programs in the future? Thank you Mr. Bill!

Posted by Angie on 08/24/2010 21:39

While market conditions can constantly change, for consumers who can qualify for a refinance loan it is a great time. Rates are near historic lows and most banks, including national banks like Bank of America, have good mortgage products that can help lower rates and payments or even get cash out. The predicament for many Bank of America mortgage holders is that they cannot qualify for the best rates and loan terms, but if you have good credit, equity in your home and have a good debt to income ratio then there has never been a better time to refi, so apply today! (check out Bills.com lenders and see if they can beat your bank of america rate too, compare and shop to save).

Posted by Bill on 08/25/2010 07:48

What do I need to get the best refinance rates with Bank of America or with any mortgage lender? What debts to income ratio and what loan to value (I have good credit, so that should not be a concern). Thank you for your refi info. EM

Posted by Edward M on 08/30/2010 13:56

The best rates usually go to borrowers with good credit, equity in their homes and good credit. Some tips and rules of thumb if you are applying with Bank of America or any mortgage lender are below: Debt-to-Income Ratio and DTI Definition Debt-to-Income ratio (DTI) is a comparison of your monthly gross income and your monthly repayment obligations to creditors. For example, if you bring home $2000 each month and your debt payments total $500, your DTI would be 25%. A bad DTI is over 55% for all debt obligations. On just your mortgage, try to keep your debt to income obligations below about 30%. Be sure to check out our info and advice on: Debt to Income Tips. Credit Rating Goals Outside of FHA loans and government loans, the best rates are reserved for people with good or excellent credit. This typically means a FICO score above 690. Loan to Value Tip Now I will define and give you some tips on Loan to Value. Loan to Value (LTV) refers to the percentage that results when the amount you owe on the loan is divided by the home's value. Thus, if your loan is for $80,000 on a $100,000 home, your loan to value would be 80,000 divided by 100,000 or 80%. Usually you want to have about 20% or more of your home's value in equity, which equates to an LTV below 80%. If you are seeking a mortgage loan, whether a purchase loan or a refinance loan, be sure to check out the Bills.com lenders and get a free Mortgage Refinance Quote.

Posted by Bill on 08/31/2010 15:07