Bank of America Refinance Review

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READER QUESTION

Should I refinance my home with Bank of America?

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Bills.com Resident Expert
Dec 12, 2011
HIGHLIGHTS
  • Compare rates and loan terms Bank of America offers for refinance loans.
  • Do not just look at the rate or APR, but also fees and the lifetime TrueCost of refinancing - with Bank of America or any lender.
  • Make sure that you know what type of loan you need before selecting a refinance lender.
BILL'S ANSWER

Thank you for your question on Bank of America and refinancing your home.

Bank of America

In my 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.

Shop Around for the Best Refinance Loan

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 the Bills.com 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:

Adjustable Rate Mortgages

Do you have an adjustable rate mortgage (ARM)? As interest rates increase, ARM loan payments do too. Homeowners concerned about payments, and whose interest rate is higher than current fixed mortgage interest rates, should consider a refi mortgage. Many economists forecast basically stable interest rates for the short-term future but with the amount of uncertainty in financial markets, there is 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. If you are confident that you are going to move from your home in 4 or 5 years, you should consider a 5-year ARM, as the interest rates will be lower.

Please use th eBills.com Mortgage Affordability Calculator and the Mortgage Payment Calculator, to help you determine how much you can afford to pay and what your new mortgage payment will be.

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.

Best,

Bill

Bills.com

Comments (38)


Avatar
JO A.
Ely, MN  |  October 27, 2011
I would avoid BoA at all costs. I currently have my loan thru them. I have never missed a payment and only owe 110K on our home valued at 250K (tax assessment). I wanted to refinance to a lower interest rate. They ordered a new appraisal on our property and because their appraiser could not find 3 comparables, they would not do the refinance. I looked into a local appraiser, who was familiar with the area, and they found several comparables that could be used. BoA didn't care. They also had us fax the same information over and over again. Never returned phone calls. It was horrible. I have had my current loan with them for 15 years and have never been late on a payment and often doubled up on a payment and have paid off over 70K on the existing loan. That meant nothing!!!!!
Avatar
Bills.com
October 27, 2011
Don't let your horribly frustrating experience with Bank of America stop you from taking advantage of today's low rates. I suggest you get a free, no-obligation refinance quote with one of Bills.com's pre-screened lenders.
Avatar
Chris R.
September 24, 2011
We have a first and second mortgage with BAC. Do whatever you can to get away from them, the bank is one of the worst. Since we bought the house 4.5 years ago, we have never been late on a payment, in fact it's on auto ACH payment each month so in cannot be late. BAC has made errors saying we were late several times when we were not regarding tax pYments as well. Customer service stinks, was outsourced to India several years ago, now I make sure I get a call center in Lancaster, CA or Arizona, or Texas. Way too many problems, costs us time and stress to fix their problems, and they won't even look at refinance if you're underwater which 25% of the country is currently situated. Pay them off as fast as possible, don't give them any more interest than you have to. Stay away from BAC and the other Big banks. Go with a local credit union. We opened several accounts at a military-related credit union and they've been great, especially compared to BAC, Wells Fargo, Chase and Citibank, all with whom I've done banking with before.
Avatar
Steve B.
Chicago, IL  |  August 18, 2011
Do all Bank of America branches have the same refinance loan rates, or do their rates change if I call or do it online instead of at my local bank? Please let me know, since I want to refinance at these crazy low rates!
Avatar
Bills.com
August 19, 2011
Lenders can have regional differences in the loans they offer, meaning that a loan through B of A on a Virginia property may have a different rate than loans offered on a California property. However, all the branches should offer the same rate for any loan within a single state.

I agree that you want to take advantage of today's low rates. I suggest you see what one of Bills.com's approved lending partners can do for you. If nothing else, you can use it as a basis of comparison for what you find at B of A.
Avatar
Grant I.
Jewell, GA  |  April 28, 2011
Does Bank of America do Jumbo refinance loans too? I think i need a jumbo, not a conforming mortgage loan.
Avatar
Bills.com
April 28, 2011
Call and ask. Jumbos are hard to come by today.
Avatar
Sassy J.
Ashville, AL  |  March 14, 2011
I feel like i cannot refinance now. Credit is terrible. We are planning on staying in our home. My husband is disabled and we made is accessible for him. Planning on staying here just would like to refinance and get fixed rate with smaller payments. No one wants to help.:(
Avatar
Bills.com
March 15, 2011
Lenders qualify you for a loan by examining your income, credit, value of your property, and your work history. If you are lacking in only one area, then refinancing can be impossible.

Do you have enough income to qualify for a refinance? Lenders look at your debt-to-income ratio, your gross income divided by the sum of the mortgage payment, property taxes, and homeowner's insurance, as well as the monthly costs for debts like car payments, credit card debts, and child support or alimony obligations. If you have strong enough income to qualify, then you should focus on improving your credit score. Look into FHA loans, as they have less stringent credit requirements. I hope that your situation improves.
Avatar
Chris F.
December 21, 2010
Any idea on how long it takes for Bank of America to complete a refinance mortgage loan? I want the quickest and fastest refinance process, before rates rise.
Avatar
Bills.com
December 21, 2010
Checking around, I found out that Bank of America is taking 3 to 4 months to close a loan right now, as of late 2010. Your comment mentioned about a need to work with a lender who moves quickly, so you can locking in a low interest rate before rates rise. It seems to me that you are confusing the time it takes to close a loan and what you need to do to lock in a low rate. Most loans commonly come with an interest rate that is locked for 30 days. Interest rates can be locked for a shorter or longer period of time. To lock it for a longer period than 30 days usually costs the borrower somewhere between .125 and .25 points for every 15 extra days locked. A lender can choose to pay the costs or to pass them on to the borrower. I suggest that you go to the Web site for Home Account. There, you can compare rates from different lenders and find out what kind of loan you qualify for. When you speak to lenders, ask them directly how long the average loan is taking to close, how long your rate is locked for, and who will pay to extend your rate lock, should the loan not close quickly enough. The bottom line is that you can lock the loan whenever you want, protecting yourself from a rise in interest rates.
Avatar
Adam C.
San Jose, CA  |  January 31, 2011
Here is my BoA experience. It takes them 3 to 4 months to close. After my initial lock has expired, they gave me the wrong loan terms, wrong interest rate, and wrong loan amount. I have to call them at least twice a week (ongoing). No wonder the real-estate/lending industry is a mess. Look at all the incompetent people who are working there.
Avatar
Bills.com
January 31, 2011
Thank you for taking the time to share your feedback about BofA. If you have time, please fill out a at review of your Bank of America experience.
Avatar
Sally B.
December 05, 2010
Is there a way to see if you got the best rate online when you are refinancing a mortgage, or do you just have to apply with several lenders and make them compete for you and then pick the best refinance loan?
Avatar
Bills.com
December 06, 2010
The interest rate is just one part of the deal. Every lender promises it will give you the lowest rate — if you qualify. The if you qualify part is always in fine print. You also need to consider the number of points, if any, the lender will charge. It pays to shop and get quotes from several lenders because each lender has slightly different underwriting standards.
Avatar
Bills.com
October 11, 2010
Yes, rates are currently at a historic low. I recommend that all homeowners review their current mortgage rate to see if refinancing makes sense. Shop around for the best loan that you can find. Start by visiting the Bills.com refinance savings center to get no-cost quotes from mortgage refinance providers.
Thanks for your feedback!

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