Bank of America Mortgage Review 2024

Bank of America overview

Bank of America’s home loan products include mortgages, refinance loans and home equity lines of credit (HELOCs). The bank offers both preapprovals and prequalifications, with “rapid preapproval” available to online applicants. The bank’s Preferred Rewards program offers a $200 discount on mortgage fees. To qualify, you need to have at least $20,000 on deposit with the bank.

Pros and cons of Bank of America

How Bankrate scored Bank of America

• Affordability: Bank of America shares current mortgage offers upfront online, so you won’t need to provide contact info or get in touch in order to make some general comparisons. The bank’s rates are competitive against Bankrate’s averages (as of this review), but you’ll also pay some fees you might be able to avoid if working with another lender.
• Availability: Bank of America’s mortgages are available to borrowers nationwide.
• Borrower experience: Bank of America’s extensive footprint translates to a relatively standardized lending process, regardless of which branch you visit or loan officer you work with.

Affordability: 6.8/10

Bank of America displays mortgage rates on its website, updating them daily. It is less forthcoming regarding fees, however, which add to your closing costs. To learn these details, you’ll need to consult with a loan officer to get a loan estimate.

Availability: 10/10

Bank of America provides conventional, FHA and VA loans; it doesn’t offer USDA loans, which are for borrowers in rural areas within certain income ranges. In addition, the bank offers jumbo loans for buyers purchasing in higher-priced markets. For a conventional loan, you’ll need a minimum credit score of 620, and might be able to get away with as little as 3 percent or 5 percent down, depending on loan program. In 2022, the bank introduced a special no-down payment mortgage for borrowers in Black and Latino communities. (The bank determines eligibility for this program based on income and location, however, not ethnicity or race.) For homeowners, Bank of America can also help with refinancing or tapping home equity for cash.

Borrower experience: 8.5/10

Bank of America is the second-largest bank in the U.S., though when it comes to mortgages, it doesn’t top some of the other big banks in terms of loan volume. The bank is accredited by the Better Business Bureau with an A- rating, but a one out of five stars from customers on the site. In 2023, J.D. Power ranked the bank above average for customer satisfaction in mortgage origination.

As far as experience, Bank of America offers an online application with both prequalification and preapproval. You’ll find helpful educational tools on the bank’s website, and its app allows applicants and mortgage holders to learn about loan options, get prequalified, apply for and lock in a loan, make loan payments (and set up autopay) and a variety of other loan servicing options. The bank also supports e-signature and electronic document services. It has 3,900 branches.

How to apply for a mortgage with Bank of America

You can apply for a mortgage with Bank of America in person at a branch location, online or by phone at 866-466-0979. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with Bank of America

Bank of America offers both rate-and-term and cash-out refinancing options. You can view current refinance rates on the bank’s website. Although the rates advertised include points, they don’t account for any lender fees. The application process for a refinance with the bank is similar to the process of applying for a purchase loan.

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability. Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%

  • Availability. Loan products - 50%; licensing - 40%; credit score - 10%

  • Borrower experience. Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.

  How we suggest lenders to compare

  To help you make the most informed decisions, our editorial team suggests two (2) alternative mortgage lenders for each lender reviewed in our comparison table. In most cases, these alternatives 1.) share the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rate highly for Bankrate Score. In the event more than two lenders meet these standards, we suggest the ones with the lowest APRs.