Bank Of America Mortgage Full Review
As one of the worlds leading financial institutions, Bank of America has branches located in 38 states but originates mortgage loans across all 50 states in the U.S. It offers a number of different mortgage loans, including refinance, home equity,conventional, jumbo, FHA and VA loans.
Customers can begin the mortgage application process by applying online, over the phone, or in person at one of the banks branch locations. What makes this lender stand out is its Preferred Rewards program. Preferred rewards members see perks such as discounted mortgage origination fees and discounted home equity interest rates. The price of membership, though, is high. The lowest tier with the lowest rewards starts with a balance of $20,000 in combined Bank of America accounts. This perk makes the company a competitive mortgage lender for those who have high cash flow balances.
While the banks website does provide a good amount of basic information about the mortgage process, customers who have questions may find it difficult to get a clear answer from lending specialists. Here are a few things you should know about Bank of America before applying.
Where Can You Get A Mortgage With Bank Of America
Anyone in the 50 states can get amortgage from Bank of America online or over the phone. And millions will beclose enough to a branch to engage in person with the lender.
The coasts are generally well served, asare many Southern states. But plenty in thecenter and north of the country have few or no brick-and-mortar locations. So,as with all other lenders, your chances of having a face-to-face experiencedepend on your ZIP code.
Others will find this banks onlineresources more than adequate for making and tracking their home loanapplication.
Bank Of America Reverse Mortgage Review
Back in the early 2000s, much of the volume of reverse mortgages in the U.S. was attributed to big banks, including Bank of America. Today, that landscape has changed.
Bank of America began in the reverse mortgage space with a small retail channel, before ramping up its operations through the acquisition of Seattle Mortgage reverse mortgage business in 2007.
The company then grew as both a retail and wholesale lender, meaning it offered HECM loans through its retail branches, and closed loans that were originated by mortgage brokers across the country.
Before exiting the market, Bank of America was the second-largest retail lender, and was the second-largest wholesale lender, with more than 18% market share in wholesale.
Around the time of its exit, many banks and mortgage lenders were changing their operations due to the Great Recession and the impact it had on the housing market.
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Should I Care Who My Mortgage Servicing Company Is
Since mortgage servicing experiences can vary, some homebuyers want to know the name of the company that will service their mortgage after closing.
This is understandable. But when shopping for a mortgage loan, the focus shouldnt be on the servicing company. It should be on getting the most affordable loan. This can potentially save thousands over the life of the loan.
In all honestly, even if your mortgage lender transfers the servicing rights, youll probably have little interaction with the servicing company.
When shopping for a mortgage, the focus shouldnt be on the servicing company. It should be on getting the most affordable loan.
Keep in mind, too, that many reputable lenders also partner with reputable servicing companies.
So if you want to increase the odds of having a positive experience with a mortgage servicing company, start by getting rate quotes from well-known, highly-rated lenders.
Also, dont be afraid to ask questions. If youre concerned about servicing, inquire as to whether a lender services their own loans.
If theyll transfer your mortgage, get the name of the servicing company they use. From there, you can research the company to make sure it has a good reputation and high ratings with its customers.
What Is A Non
A Non-QM or Non-Qualified mortgage loan is a home financing solution for responsible borrowers that dont fit into the parameters of a traditional mortgage. Millions of people that dont qualify for a home loan by using their tax returns, W-2s or pay stubs alone, are able to qualify with us. Non-QM loans fill the homeownership void by allowing the use of alternative income verification methods and higher debt to income parameters that help get you approved for the mortgage loan you dreamed of.
Non-QM Loans are NOT subprime mortgages or stated-income loans.
Benefits of Non-QM Loans:
- Profit and Loss Onlyour most popular option!
- Bank Statement
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Type Of Mortgage Rates
There are a variety of costs associated with a mortgage loan. The annual percentage rate will reflect the interest rate, brokerage fees, and other charges established by the lender. When researching for a loan, always look for the most current mortgage rates.
Lenders typically divide their products between fixed mortgages and adjustable-rate mortgages.
|Interest rate doesn’t change during the loan term||Interest rates can change during the loan term. By law, ARMs have a lifetime cap, which limits the interest rate raise on the loan|
|Monthly payments stay the same during the loan term||Monthly payments may vary depending on interest rate fluctuation.|
|A good option for homebuyers planning to stay for a long time in the house||A better option for homebuyers who plan to live in the house for a shorter amount of time|
|Three terms for fixed-rate mortgages: 15- year, 20- year, and 30- year||ARMs have an adjustment period where the initial payment and rate for the loan will stay the same for an established period. It can be between 1 month and 5 years. Afterward, rates can change every quarter, year, 3 years, or 5 years|
Youre Our First Priorityevery Time
We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.
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‘protect Our House’ Pr Campaign
In September 2007, after months of negative publicity and the announcement of a reduction of 20% of its workforce, Countrywide launched a public relations campaign aimed at demoralized employees. Employees were expected to sign a pledge to “demonstrate their commitment to our efforts” and “to tell the Countrywide story to all”. Those who signed the pledge received a green rubber Protect Our House wristband.
Is Bank Of America Trustworthy
The Better Business Bureau gives Bank of America an A+ in trustworthiness. A strong BBB grade indicates a company responds to customer complaints effectively and is transparent about business practices.
Bank of America ranks second in customer satisfaction in the JD Power 2020 Primary Mortgage Origination Satisfaction Survey, after Rocket Mortgage.
However, Bank of America does have some recent public scandals involving discrimination:
- The Department of Justice charged Bank of America for unfairly denying home loans to adults with disabilities, even though they qualified for loans. Bank of America paid around $300,000 total to people who were refused loans.
- The Department of Labor required Bank of America to pay $4.2 million to people who claimed the bank discriminated against women, Black, and Hispanic applicants in the hiring process.
If these issues bother you, you may prefer to use a different lender.
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How To Apply For A Mortgage With Bank Of America
You can apply for a mortgage in person, over the phone or online through the Bank of America Digital Mortgage Experience. The application takes around 30 minutes to complete.
To apply online:
Are Bank Of America Loans Safe
Bank of America is the second-largest bank in the US with a longstanding history of providing financial service. Its website is easy to use, offering customer support and encryption to safeguard information. Its also consistently won an award for Best Overall Identity Safety by Javelin Strategy & Research for the past nine years. Beyond this, it offers resources to help customers further protect their information such as free online security tools and educational videos about how to keep your identity safe
If youre having trouble or have questions, contact BofA customer service by phone or visit a branch in person.
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What Your Monthly Mortgage Payments Could Be With Bank Of America
When it comes to what youll have to pay on a monthly basis for a Bank of America mortgage, more than just the interest rate and APR come into play. For example, how much of your new homes value you cover with a down payment will determine exactly how large your loan will need to be to offset the balance. Combining all of these pieces of information will lead you to what your monthly payments will likely be, though your own personal financial situation could vary things slightly.
|These payment calculations do not include homeowners insurance, property taxes or closing costs.|
What To Do If Youre Unhappy With Your Loan Servicer
Unfortunately, you dont have a say in whether a mortgage lender transfers your loan to a servicing company. They have the right to transfer the loan and decide where it ends up.
Even so, if youre unhappy with your loan servicer or experience major issues, you can file a complaint with the Consumer Financial Protection Bureau.
Remember, too, that not every lender transfers their loans to a servicing company.
Some lenders have the capacity to service their own loans and handle the ongoing administration of these loans. This is rare, but it does happen.
If you prefer a lender that provides their own servicing, you can apply with one of the following banks:
- Quicken Loans
- US Bank
In addition, many local and smaller community banks service their own loans, as well as some credit unions.
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Pros And Cons Of Bank Of America
- Accessibility. Bank of America originates loans and has branches in all 50 states. If theres no loan officer available at your branch, the bank has in-house video conferencing.
- Low interest rates. Comparatively, Bank of America charges lower rates on the most popular mortgage products. You can get a custom rate online too.
- Alternative credit data. For some loans, the lender will accept rent and utility statements.
- Discounts for existing clients. Preferred Rewards clients may qualify for a $200 to $600 discount on their origination fees.
- High volume of consumer complaints. Most of the complaints online point to customer service issues.
- Less personalized approach. Bank of America has thousands of branches across the country, which makes it convenient but means you may not get the same level of customized care.
- Limited coverage in the Midwest. Its physical presence is concentrated along the East and West Coasts.
- History of irresponsible mortgage lending. The bank has been fined for past financial fraud.
Compare Bank of America to other lenders
How We Found The Best Mortgage Lenders
Our rankings were derived from more than 60 data types in the following categories:
- Types of loans offered: We favored companies that offered a variety of loan options, such as fixed- and adjustable-rate mortgages, term-lengths, and loans backed by government agencies.
- Customer Experience: We favored companies that consider alternative credit data, provide a streamlined application process, at least two forms of customer service, and a variety of resources and educational tools
- Reputation & Transparency: We evaluated consumer complaints with the CFPB and the number of regulatory actions filed with the NMLS
Over the course of our research, we consulted the following expert sources.
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Bank Of America Mortgage Process
Bank of Americas Digital Mortgage Experience lets the homebuyer use the companys website or mobile banking app to apply for a mortgage. If youre already a Bank of America customer, the app will pre-fill much of the application for you, and many clients get conditional approvals the same day.
Another perk for existing customers: If youre enrolled in Bank of Americas Preferred Rewards program, you can qualify for a $200 to $600 reduction in the origination fee the bank usually charges for purchase or refinance mortgages .
After submitting your application, Bank of Americas Home Loan Navigator app lets you track its status and see any outstanding to-dos needed to keep the application moving. Home Loan Navigator lets you sign and submit many loan documents online, and you can also choose to receive your disclosures digitally, so you dont have to deal with a mountain of paperwork.
Our Top Picks For Best Mortgage Lenders
- Caliber Home Loans Best for Self-Employed Individuals
- Navy Federal Best In-person for Military Members
- Bank of America Best National Bank
- Better Mortgage Best for Fast Closing Time
- First-time homebuyers can pay as little as 3% down
- Best in customer satisfaction on J.D. Power study
- Representatives are available every day of the week during flexible hours
- No home equity loans or home equity lines available
- No brick and mortar locations
Quicken, a brand under Rocket Mortgage, is the largest retail lender in the US, offering various mortgage products, including conventional mortgages, ARM FHA, VA, and jumbo loans. Aside from the traditional 15- and 30-year mortgages, the lender also has loans with flexible terms between 8 and 29 years.
Quickens YOURgage program sets it apart from other other online lenders by allowing borrowers to choose the term of their fixed-rate loan and borrow up to $548,250. First-time homebuyers can pay as little as 3% down, which is especially helpful if you havent saved the 20% benchmark for a down payment.
- Compare offers from over 1,500 lenders in minutes
- Various home loan learning sources available
- LendingTree gives your information to various loan originators when you apply. These companies compete for your business, and those lenders will contact you, probably during the same period, via phone and email
- No home equity loans available
- Only has physical branches in 18 states
- No equity home loans available
LATEST NEWS AS OF SEPTEMBER 2021
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Recap Of Bank Of America Personal Loan Alternatives
Here is a recap of some alternative options to Bank of America personal loans. Make sure to consider all eligibility requirements before applying with a lender. If a soft credit check is available, that is preferred as it wont impact your credit score. A hard credit check can stay on your credit report for around two years.
Both Upgrade and Upstart offer soft credit checks.
How To Apply For A Loan With Bank Of America
You can apply for a home mortgage or auto loan on Bank of Americas website. For a business loan, youll need to contact Bank of America by phone or in person.
Generally, youll need to submit the following information when you apply:
- Full name.
- Date of birth.
- Financial details.
Depending on the loan youre requesting, these financial details can include W-2s and pay stubs, bank statements, tax returns and your businesss profit and loss statements.
You can read the specific requirements for the loan youre interested in by checking out our reviews of each Bank of America loan product.
Bank of America loans are available in all 50 states and Washington, DC. To be eligible, you must:
- Live in the US.
- Be a US citizen, resident or non-resident alien.
- Be at least 18 years old or 19 in Alabama and Nebraska.
To qualify for a business loan, your business must also:
- Be at least two years old.
- Generate at least $250,000 in annual revenue.
However, startups might be able to qualify for an SBA loan through Bank of America.
What Is Bank Of America
Bank of America is one of the countrys four biggest banks, offering mortgage products along with banking and investing accounts.
But its been involved in several scandals. In 2014, the bank was fined over $16 billion by the Justice Department for financial fraud, in large part because of how it handled mortgages. At the time, it was the largest settlement with a company in American history.
In a separate case, Bank of America was fined $1.27 billion for mortgage fraud, but the charge was thrown out after the bank appealed the ruling.
And in 2017, a judge fined Bank of America $45 million for its heartless treatment after it improperly foreclosed on a couples home and evicted them with only three days notice.
Historical mortgage data for Bank of America
All numbers based on 2019 nationwide data from the Home Mortgage Disclosure Act.