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Friday, September 24, 2021

Bank of America Mortgage Review 2021

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Bank of America serves roughly 66 million customers in all 50 states. The lender offers conventional, Federal Housing Administration, Department of Veterans Affairs and jumbo loans as well as home equity lines of credit and mortgage refinancing.

  • Bank of America has a wide variety of mortgage products.
  • The lender offers annual percentage rate or closing cost discounts for qualifying Bank of America and Merrill Lynch clients.
  • Home equity lines of credit have no annual, balance transfer or cash advance fees or closing costs.

  • U.S. Department of Agriculture and home equity loans are not available.
  • Bank of America typically requires a down payment for mortgage loans except VA loans.

Bank of America’s Affordable Loan Solution, which is available to creditworthy borrowers, requires a 3% down payment and has no mortgage insurance requirements.

Other specialized mortgage products include:

  • America’s Home Grant. This program provides closing cost assistance for eligible clients in select markets.
  • Mortgage 100. With this program, Merrill Lynch clients can pledge eligible securities as a down payment instead of cash.

“We have a full array of mortgage options, from (loans for) first-time buyers seeking low down payments to jumbo options for high-net-worth clients,” says Kris Yamamoto, Bank of America senior vice president of corporate communications.

  • Conventional loans
  • FHA loans
  • VA loans
  • Jumbo loans
  • ARMs
  • Mortgage refinancing
  • Mortgages with no down payment (VA loans)
  • Home equity lines of credit

You’ll need a FICO credit score of at least 600 and a maximum debt-to-income ratio of 55% to qualify for a mortgage with Bank of America. However, each loan product may have its own requirements.

There’s no minimum loan amount for most loans. The maximum loan amount is $5 million, which is available as a jumbo loan.

Bank of America doesn’t disclose its mortgage loan fees. For its home equity line of credit, the lender doesn’t charge closing costs and doesn’t have annual, balance transfer or cash advance fees.

Bank of America reduces mortgage origination fees by $200 to $600 for qualifying Preferred Rewards clients. Preferred Rewards home equity line of credit clients may be eligible for a 0.125% to 0.375% interest rate discount based on their Preferred Rewards tier.

You must have at least $20,000, $50,000 or $100,000 in qualifying combined balances with Bank of America deposit or Merrill Lynch investment accounts to qualify for the Preferred Rewards program.

The lender has an A+ rating with the Better Business Bureau.

In 2020, the Consumer Financial Protection Bureau received 1,178 mortgage-related complaints for Bank of America. The most common complaints involved:

  • Trouble during the payment process
  • Struggling to pay mortgage
  • Applying for a mortgage or refinance

The lender provided a timely response for all but two complaints.

Bank of America allows borrowers to get prequalified, apply for loans, submit documents and manage their accounts online.

Yamamoto says borrowers also can apply for a mortgage on their phone or mobile device: “In many cases, clients may only have to input answers to just 10 questions and learn whether they are approved for a loan within the same day.”

  • Bank of America Preferred Rewards customers
  • Homebuyers who want an online mortgage experience
  • Homebuyers seeking an especially small or large loan

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