Bank of America Mortgage Review 2020

Bank of America mortgage rates

ProductInterest RateAPR
30-year fixed rate3.250%3.432%
15-year fixed rate2.500%2.802%
5/1 ARM rate2.625%3.875%

*Example rates based on a $300,000 mortgage in Hartford, CT. 

Bank of America is the second-largest bank in the U.S, with an extensive network of locations spanning all 50 states. In addition to having a branch on every corner, Bank of America offers a streamlined online mortgage application process. It provides a typical variety of mortgage options, and there are available options for first-time homebuyers. However, its discounts for current customers may not live up to the competition.

Why it might pique your interest

Bank of America’s online tools set it apart from other lenders. This lender offers customers the Digital Mortgage Experience, which allows potential borrowers to prequalify and apply online to see interest rate estimates and streamline the approval process. In addition, this lender offers a mortgage calculator and closing cost calculator to help you know what to expect. B of A provides a lot of useful information online, which can make it easier to compare its rates and offerings to other lenders. 

Bank of America provides conventional fixed-rate and adjustable-rate mortgages. First-time homebuyers can benefit from its range of mortgage options, such as the Affordable Loan Solutions mortgage, which allows borrowers to make down payments as low as 3%, though there are income requirements to qualify. Bank of America also offers FHA and VA loans to eligible borrowers, which is something to consider if you’re looking for lower down payment options or have a lower credit score. 

Bank of America overview

Loan options:

  • Fixed-rate
  • Adjustable-rate 
  • Jumbo loans
  • FHA and VA loans 
  • Affordable Loan Solutions mortgage, unique to this lender

Pros and cons

Pros 

  • B of A’s Digital Mortgage experience and other online tools make it convenient to research and find your custom rates. 
  • Preferred Rewards fees discount is a plus for current customers. 
  • Bank of America serves all 50 U.S. states.

Cons 

  • Potential borrowers need a higher credit score to qualify for advertised rates.
  • B of A does not offer USDA loans. 
  • There’s no interest rate discount for current customers, only a fee discount.  
  • There’s little information regarding credit score requirements and rates online. 

The final word

Bank of America is worth considering if you have excellent credit or are a Preferred Rewards member. This lender offers a discount on mortgage origination fees to Preferred Rewards members, but it doesn’t offer interest rate discounts. The government home loan options and the Affordable Loan solutions mortgage are viable options for those with lower credit scores. However, borrowers need an excellent credit score of 740 or above to qualify for the low rates advertised for traditional fixed-rate or adjustable-rate mortgages with this lender.

Bank of America Mortgage FAQs

  1. Is Bank of America good for mortgages? Bank of America is a good option for mortgages. Not only does the bank offer online service for ease of use but it also ranks well with J.D. Power for customer service. The lending giant offers a wide range of interest rates, though as expected, the lowest rates are generally reserved for borrowers with exceptional credit scores. Bank of America also provides a variety of mortgages to choose from and offers assistance with closing costs and down payments. The banks are pretty widespread around the country, but even if you don’t have a location near you, the website is easy to navigate and customer service agents and bankers are readily available to help. Bank of America also often provides discounts or special rates for existing customers.  
  2. Will Bank of America pay closing costs? Possibly. Bank of America has the America’s Home Grant Program to help some homebuyers with closing costs. The program offers a one-time grant of $7,500 that does not need to be repaid. You can use it for title fees, recording costs or even to pay down the interest. There are income and geographic requirements that must be met to access this grant, so speak with a Bank of America representative to see if you qualify.   
  3. What FICO score does Bank of America use? When you apply for a mortgage loan at Bank of America, they will most definitely check your credit. As a standard, you’ll most likely need a score of 620 to get a loan. Some loans, like a VA loan, may require an even higher score. Bank of America doesn’t list these requirements on its website, so your best bet is to consult a specialist at the bank to see what you qualify for.

Rayna Perry

Personal Finance Copywriter

Rayna Perry is a Personal Finance Copywriter at Interest.com and a Public Relations major at the University of Georgia. When not writing about personal finance, she is usually watching a great movie or creating a new playlist.