Bank of America Mortgage

Bank of America Mortgage

 4.0/5 (2208 ratings)
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About Bank of America Mortgage

Bank of America (NMLS #399802) offers mortgage loans nationwide and has lending specialists available both online and at branch locations. If you’re searching for a mortgage loan, loan refinancing or a home equity line of credit, visit Bank of America’s website to apply.

Overall Satisfaction Rating

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Pros

  • Competitive rates
  • 100% online application
  • Discounts and perks for current customers
  • Online and in-person loan specialists

Cons

  • Best rates available only to Preferred Rewards members
  • No rate check without a hard credit inquiry

Bottom Line

Bank of America is one of the three largest banks in the U.S. It provides mortgage loans, loan refinancing and home equity loans for consumers in every state.

Top Bank of America Mortgage Reviews

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Rated with 5 stars
Verified

Bank of America is very easy to work with, both on our mortgage and our HELOC. … At one point our mortgage was going to go up because the escrow was getting low. We added some mon...

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Rated with 5 stars
Verified

It was a pleasure working with them. They are Nationwide, have lower rates and have applicable discounts. Very professional wonderful company. I recommend that all potential home ...

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Rates

Bank of America generally publishes starting mortgage rates for conventional loans on its website daily. For rates based on your individual situation, you can apply for preapproval on the company’s website or contact a loan officer for a customized quote.

Over the past several years, Bank of America’s average rate on home purchase loans has been consistently lower than the national average. In 2021 according to Home Mortgage Disclosure Act data, its average rate of 2.59% was nearly half a percentage point lower than the national average of 3.07%.

Bank of America average home purchase rate vs. national average

YearDifference from national average
2021-0.48%
2020-0.22%
2019-0.57%
Information pulled from public Home Mortgage Disclosure Act data. Rates reflect noncommercial home purchase loans only.

Mortgage rates change frequently and vary based on your loan term, credit history and mortgage type. Also, keep in mind the differences between an interest rate and an annual percentage rate (APR):

  • An interest rate is the cost of borrowing, expressed as an annual percentage of the total amount borrowed. It doesn’t include additional fees, like origination fees or discount points.
  • An APR includes these charges, so it tends to better reflect the total cost of the loan.

With mortgage rates rising in 2022, adjustable-rate mortgages (ARMs) are becoming more popular among borrowers. This is because ARMs typically have lower starting rates than fixed-rate mortgages. An ARM might make sense if you plan to sell your home (or refinance) before the rate resets.

Application process

Bank of America offers an online application that lets you begin the mortgage process from anywhere. You can start the pre-qualification process by answering a few questions and authorizing a credit check.  Be prepared to provide information about your income and assets; Bank of America uses these details to estimate how much you can borrow.

Once you’re pre-qualified, you can move forward with preapproval. For this, you need to upload financial documentation (like W-2s and bank statements) to Bank of America’s online Home Loan Navigator tool. Once the lender has all the necessary documents, you should receive a preapproval decision within 10 business days.

Bank of America Mortgage application features

FeaturesAvailability
Online application
Mobile document upload
Physical branches37 states
Publishes minimum rate on website
Rate lockVaries by state (45 days for purchase; 60 days for refinance)
Pre-qualification (no hard credit pull)X
Certified approval letter

Loan types

Bank of America offers a variety of mortgage products online, including conventional loans and government-backed loans (like FHA and VA loans). You can also refinance your existing home loan with Bank of America. The company offers flexible loan terms, including 15-year, 20-year and 30-year fixed-rate options. It also offers ARM loans.

In 2021, Bank of America ended up closing on around 58% of the home mortgage applications it received. A little more than 14% of applications were denied, and 2% of applicants had their preapproval denied.

Loan applications for home purchases only by year

202120202019
Home purchase applications79,48079,812112,411
Home purchase loans closed45,75647,30268,703
Home purchase applications denied11,47611,16112,615
Home purchase preapprovals denied1,6501,2581,630
Information pulled from public Home Mortgage Disclosure Act data. Includes conventional, USDA, VA and FHA mortgages.

Refinancing

In 2021, a majority of the mortgages Bank of America originated were for refinancing and cash-out refinances, while a bit over one-quarter were purchase loans. This isn’t unusual for 2021; 35.7% of reported U.S. mortgage loans were used for home purchases last year, while 37.9% were used for refinancing and 19.9% were for cash-out refinancing, according to 2021 Home Mortgage Disclosure Act (HMDA) data.

Refinancing may be the right decision for you if rates have gone down or you want to tap into your home equity.

Home purchase vs. refinance loans by year

202120202019
Home purchase loans27.68%26.51%33.09%
Refinance loans43.25%42.93%28.48%
Cash-out refinance12.29%11.63%12.06%
Information pulled from public Home Mortgage Disclosure Act Data. Includes conventional, USDA, VA and FHA mortgages.

HELOC and home equity loans

If you’re already a homeowner, you might be looking to cash in on the equity you’ve built in your current home with a second mortgage. You might consider taking out a HELOC from Bank of America. Bank of America home equity loans have no application fees, no closing costs and no annual fee. It takes about 15 minutes to apply online, according to the company.

Requirements

Both conventional and government-backed loans have their own sets of requirements to determine eligibility and how much you can borrow. Conventional loans typically require a higher credit score and down payment than you need for a government-backed mortgage.

Bank of America doesn’t disclose many of its loan requirements. However, most lenders require a credit score of 620 to be eligible for a conventional loan. FHA loans require a credit score of at least 500 to 580, and jumbo loans typically require higher credit scores  — at least 680. The company does state that a conventional loan may require a 3% down payment, while VA loans have no down payment requirements.

With respect to debt-to-income ratio, most lenders look for a ratio of 36% or lower for conventional loans. Although the company doesn’t disclose a maximum DTI ratio on VA loans, the Department of Veterans Affairs sets 41% as a benchmark.

Bank of America does not currently offer USDA loans. For more information on USDA loans, read our guide for selecting the best USDA-approved lenders.

National mortgage requirements by type

Min. credit scoreMin. down paymentCompare with other lenders
ConventionalTypically 620Typically 3%Mortgage lenders
FHA5003.5% with 580 credit scoreFHA lenders
VASet by lender (often 580)0%VA lenders

Cost and fees

Bank of America charges an origination fee, but this fee can vary. You can expect to pay between 0.5% and 1% of the loan amount in origination charges as part of your closing costs. In general, you should plan to spend between 3% and 5% of your loan amount in closing costs on top of your down payment.

The company offers discounts on origination charges for certain customers. For example, members of the Preferred Rewards program may qualify for a discounted origination fee, depending on their program tier. Discounts range from $200 to $600.

FAQ

How does Bank of America Mortgage work?

To pre-qualify for a Bank of America mortgage, visit its website and fill out the pre-qualification application to see how much you’re eligible to borrow. If you’re already pre-qualified, complete the loan application to pursue a Bank of America mortgage. Along with other financial documents, you need to provide:

  • Proof of income
  • Tax returns
  • Credit history
Is Bank of America Mortgage legit?

Bank of America Mortgage is a reputable lender that offers multiple types of mortgage loans, including refinance loans and HELOCs. If you’re searching for a lender with comprehensive online services and widespread branch locations, Bank of America Mortgage could be the right lender for you.

Where is Bank of America Mortgage available?

Bank of America mortgage loans are available in all 50 states. The company has over 4,000 across nearly 40 states.

Bank of America Mortgage Reviews

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How do I know I can trust these reviews about Bank of America Mortgage?
How do I know I can trust these reviews about Bank of America?
  • 4,135,147 reviews on ConsumerAffairs are verified.
  • We require contact information to ensure our reviewers are real.
  • We use intelligent software that helps us maintain the integrity of reviews.
  • Our moderators read all reviews to verify quality and helpfulness.

For more information about reviews on ConsumerAffairs.com please visit our FAQ.

Page 1 Reviews 0 - 10
Rated with 1 star
Verified Reviewer
Original review: Nov. 24, 2022

Paid off my mortgage. Bank of America in its grand wisdom decided it would be a grand idea to send the lien release to the wrong county. I called them up and asked them to send it to the correct county. So they sent a copy of the one they sent to the wrong county to my county. The problem is the copy has the wrong county's book number, page number and instrument number on it. My county has no record of my property with the incorrect book/page and instrument number. Several phone calls about the issue has yielded the wrong result. If they don't get it right next week I will be getting an attorney to force them to do the job right.

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Rated with 1 star
Verified Reviewer
Original review: Feb. 14, 2022

I went through a divorce recently and assumed my home loan to remove my ex. I will now have zero access to the loan details via online banking "forever". So basically, if you ever assume a loan at BofA, be prepared to forever lose access to the details. No recourse with any support team, no ability to send feedback to them. Just forever blocked unless I want to refinance. I now have to wait in line for 30-60 minutes to call their customer service team any time I have a question about my account or want to see any detail about it - payments, balances, etc. If this sounds too crazy to be true, or that my situation is some type of strange edge case, be sure to know that it is not. I really can't believe that this is their policy.

5 people found this review helpful

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    Rated with 1 star
    Verified Reviewer
    Original review: Oct. 27, 2021

    My sister received an approval to purchase a home in July after months of repeated documents with various errors and weeks of bogus disclosures the home sell fell apart in October. She couldn't get a closing date every date was postponed to a later date until the seller pulled out of the deal and I lost $500.00. The primary person assigned to my loan wasn't available most of the time and when she was there was repeated emails asking for documents that already had been submitted. In October I was told the process was being reviewed in its entirety again. Stay away first time home buyers. They will make what should be a a joyous occasion a huge disappointment.

    13 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Sept. 9, 2021

    Have been with BOA for 4 years and very poor service. Even a small bank has better website than BOA as you can never understand how the payment gets posted as there is no before and after balance for you to track. Poor Customer service and I really don't know how they are in this business.

    7 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: July 9, 2021

    Go with another bank! I have been documented to debt for over 3 months while my house was being built. I have excellent credit with great income and very little debt. I have to give them documentation for every little transaction on my checking account. Example: They want copies of my check stubs for Payroll direct deposits. I was scheduled to close on July 7th, and called my loan officer Rex ** on July 2nd to ensure they have everything needed to close. He stated we are all ready. I drove back over 3 hours from vacation to closing and got a call an hour and a half prior to our close time, notifying me that Bank of America was not ready to close.

    I called Megan ** (Rex manager), she said that she would have to get with her team to get this resolved. I called Megan again on July 8th, she said they are waiting for their appraiser to correct a minor error on the report, and that’s all they need to close. On July 9th, I received multiple notifications of other documents they need, which was sent to the prior. Still waiting for them to get their act together to close. Don’t have a date yet!

    14 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: July 6, 2021

    Late in Fall 2020, I accepted a job in SE Iowa. The job required that I move from Denver. I contacted BOA mortgage and pre-qualified for a loan. Within two weeks, I had a contract on a house. My senior loan officer and his team realized that I was to begin my new job on Monday, January 18, 2021, so they, my realtor, my attorney, the closing company, and I all worked diligently to get everything in place.

    On Wednesday, January 13, 2021, as I was driving my fully-loaded rental truck out of Denver, I received a call from the senior loan officer. He sheepishly informed me that someone on his team had failed to file paperwork on time. Apparently, because of all the games that bankers played with mortgages prior to the housing bubble bust, laws were in place stating that all paperwork needed to be filed three business days prior to closing. He said the paperwork filing error meant I could not close on Friday, January 15, 2021 as scheduled. He went on to say that my closing would have to be pushed to Tuesday, January 18, 2021 because I wouldn’t be able to close on Saturday and Monday was a holiday. I was stunned.

    I pleaded with him to find a way to fix THEIR error. I explained that I had just moved out of my apartment in Denver, had started the 847-mile drive to my new home, and that I was to begin work on the day prior to the adjusting closing date. He asked me to put my concerns in writing so that he could see if there was a way to work things out. I put my concerns in writing. It was then that BOA began to ghost me and not respond to my communication attempts. (Note: They do know how to reach me each month with a mortgage payment reminder.)

    You can probably imagine how mortifying it was to call my new employer to request that I either be able to start on a later date or take unearned vacation time on my second day of employment in order to move into my home because BOA had screwed up my closing date. Then I got to be the person who showed up at their first day of employment in blue jeans because all of my professional attire was locked in the back of my moving van. Thank you for allowing me to make a fantastic first impression with my new employer, BOA.

    The story doesn’t end there. I received a satisfaction survey from BOA – which I absolutely completed. After receiving my survey, someone at the VP level in BOA left a voicemail message for me. He explained that he was concerned about my experience with BOA, wanted to discuss it with me, and wanted to make things right.

    I made numerous attempts to return his calls over the next few weeks. He never attempted to respond to any of my voicemail messages. While one of my stated concerns with his team was that they ghosted me rather than having a difficult conversation with me, the VP chose to engage in the exact same behavior. Weeks later, I received some modified paperwork from BOA, but without any letter or call of explanation. By comparing the original and new documents line-by-line, I was able to see that BOA had knocked off a few hundred dollars from my financial commitment, presumably as their attempt to “correct” their error.

    Don’t apply for a mortgage from BOA. I have preferred-customer status with them, which is why I sought my mortgage loan from them, and they still chose to treat me incredibly poorly. In case anyone from BOA ever reads this post, I do want to share that the only person on their mortgage team who I do not hold accountable is the low-level staffer who made the error. People make mistakes. How we respond to our mistakes says a great deal about us. The management team in BOA mortgage showed their complete lack of character in how they chose not to respond to their mistake.

    17 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: June 7, 2021

    We have been attempting to reach Stephanie ** at 1-800-943-2975 for 5 days now. She hasn't returned our phone calls or emails. Her voicemail said call back if she doesn't answer. We did and some very nice reps answered the phone, but weren't really helpful. On the 5th day we asked for her manager and she never answered or returned our calls. I'm the listing agent for the house for sale and will never accept an offer from a buyer who has this bank as their lender.

    18 people found this review helpful
    Rated with 5 stars
    Verified Reviewer
    Original review: April 29, 2021

    Due to Covid it took many hours of extra work to get all the documentation that was needed to close escrow. Loan Originator Sylvia ** was extremely helpful and diligent about all details. Closing took a little longer than expected but went through without a problem.

    2 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: April 3, 2021

    Bank of America is less than sub-par. I've had my 30-yr mortgage with them for 17 years now and it recently went from forbearance because of COVID to a modification (basically just moving the Apr-Oct 2020 pmts to the end of the period). However, their internal systems can't seem to show the payments applied correctly. I keep getting called incessantly by their reps to collect “unpaid” statements, except when I point out the letters they sent me where everything is perfect, they apologize lamely but fail to fix the error(s). They've even recently reported the supposed missed payments to the credit agencies which have caused my credit ratings to drop 100 points. They are an awful servicer and not competitive on initial rates. Avoid them unless you have some connection with an internal banker and they are your last resort.

    14 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Oct. 15, 2020

    It has been a painful past couple months in trying to reach out to BoA mortgage customer service department to retrieve the additional monthly payment that was deducted via auto-pay from my BoA checking account after I had refinanced with a new lender. It's been approx 3 months of trying to reach BoA customer service and getting various answers regarding where and how the funds are being returned and still no clear answer. I have refinanced with other lenders and had much better experience with them in such scenarios.

    22 people found this review helpful
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    ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. To learn more about the content on our site, visit our FAQ page. Specific sources for this article include:
    1. NMLS Consumer Access, “Bank of America.” Accessed July 19, 2022.
    2. Federal Financial Institutions Examination Council, “HMDA Data Publication.” Accessed July 18, 2022.