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Bank of America Mortgage review 2024
The Yahoo view: Bank of America is a good addition to your short-list of lenders for several reasons, including closing costs and down payment assistance available to eligible home buyers.
Bank of America is known for its commercial, industrial, and investment banking prowess. But what about getting a home loan from such a financial giant?
Whether you're looking for a 3% down payment mortgage or a way to unlock the value of your home with a home equity line of credit, BofA offers a big-bank menu of mortgages.
Key benefits
Bank of America offers grants of up to $7,500 toward closing costs and up to $10,000 toward down payment assistance for qualified buyers in many, but not all, states. This financial assistance makes BofA one of the best mortgage lenders for first-time buyers.
A home buyer program for medical professionals allows borrowers to make lower down payments and exclude student loans from debt limits. Residents and fellows can also close on a loan 90 days before starting a new position.
Existing customers may qualify for an origination fee or interest rate deductions to Preferred Rewards members. You'll likely have to sign up to draft your mortgage payments from a BofA bank account to qualify.
Need to know
In an unusual Zillow-esque move, Bank of America's Real Estate Center features home listings, including existing and new construction properties — as well as bank-owned houses.
Bank of America said their “Digital Mortgage Experience” accounted for a majority of home loan applications.
Dig deeper: What all of the best mortgage lenders have in common
Loan types offered
Bank of America for first-time home buyers
An expansive first-time home buyer section on BofA's website offers educational articles about the mortgage process, tips, tools, FAQs, and a breakdown of loan options.
Bank of America offers the standard first-time buyer loan programs such as FHA, VA, and a 3% down payment loan for income-qualifying borrowers.
Contact information is easy to find, and you can schedule an appointment, call, locate a banking center near you, or launch a chat. And it's all conveniently placed just under the "Get started" or "Learn more" buttons for a digital loan application to prequalify for a mortgage.
Learn more: Wells Fargo mortgage review
Bank of America for home equity lending
Drawing cash from your home's value is easy with a home equity line of credit. On the day of our visit to the website, Bank of America was promoting a discounted introductory rate on a HELOC of $100,000, with no application fees, no closing costs, and no annual fee. The bank also offers a fixed-rate option. HELOCs are often variable-rate loans.
BofA says a HELOC application takes "about 15 minutes" to complete. You can visit a bank location or schedule a mobile closing service to sign the loan.
Bank of America mortgage rates
Mortgage rates are easy enough to find on the Bank of America website. They are on the main Home Mortgage Loans page. On the day we checked, the default featured rates were built on assumptions of a 740 or higher credit score, a 20% down payment, and just under one discount point.
You can update these generic rates by entering a purchase price, down payment, and ZIP code in the calculator just above the interest rate table. Interestingly, the calculator defaults to a down payment of 5% or more — even though BofA offers 3% down mortgages.
Learn more: How to get the lowest mortgage rates in 2024
As you browse the website, you may hear an occasional toy piano riff sound. I kept looking around the office, trying to figure out what unknown device was causing it. Then I started checking the 30 or so tabs and multiple windows I had open on my Mac. Turns out it was a small chat icon on the bottom right of the BofA site trying to get some attention. A little annoying.
Applying for a mortgage with Bank of America
At the top of the home loans page is a box with a big "Apply now" button. BofA touts a "Digital Mortgage Experience" (with a trademark, no less), and says getting the results from a prequalifying application may take about an hour.
Mortgage preapproval applications, since they require more information, will take longer to complete. A preapproval letter will arrive within 10 business days by mail or can be accessed much sooner online.
Bank of America home buyer tools and calculators
When it comes to resources to help you think through the home-buying process, things are pretty streamlined. Under "Resources and tools," you'll find three calculators listed: affordability, mortgage payments, and closing costs.
Other tools are listed in the bottom menu.
How Bank of America mortgage compares to other mortgage lenders
Bank of America vs. Rocket Mortgage
If you have skimpy savings for a down payment, Rocket Mortgage is worth checking out. While BofA offers a 3% down payment mortgage, Rocket Mortgage provides a 1% down loan.
But Bank of America stands out for its generous home-buying assistance programs. Rocket matches the $7,500 grant toward a down payment and closing costs that BofA offers; however, Bank of America also kicks in up to $10,000 in down payment assistance to borrowers in some states.
Bank of America Home Loans vs. Chase Mortgage
If you like a combination of online convenience with an in-person option, Bank of America delivers with its "Digital Mortgage Experience" and branches nationwide. However, its big-bank competitor, Chase, also has an online loan application and preapproval with mortgage lending advisors in most states.
Bank of America shines with its home equity line of credit, which has no application fees, closing costs, or annual fees. Chase offers a cash-out refinance for equity access.
Methodology:
Yahoo Finance identified the best mortgage lenders for first-time home buyers by grading leading national lenders on a five-star scale from scores compiled from and averaged from public reviews. Criteria included interest rate, fees and loan costs, ease of application, rate transparency, loan product availability and options, customer experience, minimum down payment, minimum FICO scores, online features, time to approval, trustworthiness. Additional analysis of the latest J.D. Power U.S. Mortgage Origination Satisfaction Study provided a 5% bonus for lenders ranking above the survey average for customer experience. Advertisers or sponsorships do not influence ratings.
Editorial disclosure for Mortgages:
The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender's website for the most current information. This site doesn't include all currently available offers.