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Business Insider's personal finance team reviewed Bank of America and found it to be an industry leader and one of the best mortgage lenders available to borrowers.
We think Bank of America mortgages are an affordable choice for many different types of borrowers, including both first-time and repeat homebuyers. The lender's average rates and fees are on the low end and it offers multiple affordable mortgage programs, including up to $17,500 in assistance for eligible borrowers.
Bank of America also ranks highly in customer satisfaction, but because it's a big bank, you might not get the same personalized experience you'd have with a smaller lender. It's also not a good choice if you're looking for a more niche type of loan.
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Conforming, jumbo, FHA, VA, HELOC, Community Affordable Loan Solution, Physician Loans
- Offers a conforming, jumbo, FHA, or VA mortgage or a HELOC
- Low Average Rates and Fees
- If you're a Bank of America Preferred Rewards customer, you can get discounts
- Bank offers down payment assistance programs and an affordable mortgage product for first-time borrowers that accepts non-traditional credit
- Doesn't have a USDA or reverse mortgage, home equity loan, or construction loan
- Doesn’t disclose minimum credit score requirements
Bank of America is a very affordable mortgage lender, offering low rates and fees, plus a few different affordable homebuying programs for first-time and low-income borrowers.
- Offers mortgages in all 50 US states and Washington, DC
- Branches in 36 states and Washington, DC
- If you're already a Bank of America Preferred Rewards client, you could receive a $200 to $600 discount on your loan origination fee
- Minimum credit score and down payment displayed are for conforming mortgages
Overview of Bank of America Mortgages
Nationwide Lending
Bank of America originates loans in all 50 states and Washington, D.C. It has branches throughout the U.S., which is beneficial if you want in-person support when applying for your loan. You can search for Bank of America mortgage locations near you on the bank's website.
Bank of America Loan Options
You can get the following types of mortgages from Bank of America:
- Conforming loans: The most popular type of mortgage, a good choice for borrowers with decent credit scores
- Jumbo loans: For borrowers who need a mortgage that exceeds conforming loan limits ($766,550 in 2024)
- FHA loans: Good for first-time homebuyers or those with lower credit scores
- VA loans: Allow 0% down, but are only available for military members and veterans who meet minimum service requirements
- Home equity lines of credit (HELOC): Lets you borrow against your home's equity
- Physician loans: Makes it easier for early-career medical professionals to qualify for a mortgage with student loan debt
Bank of America Mortgage Refinancing Options
You can also refinance your mortgage with Bank of America. This lender offers refinancing on both its conventional and government-backed loans. It also has a cash-out refinance option. You can explore Bank of America's refinance rates on the lender's website.
Grants and Homebuyer Assistance from Bank of America
Bank of America is a good option for first-time and low-income buyers thanks to the various affordable homebuying programs it offers.
- The Affordable Loan Solution mortgage allows 3% down payments, comes with a "competitive rate," according to the bank's website, and can be combined with down payment assistance
- There are two Bank of America mortgage grants: the America's Home Grant program, which offers up to $7,500 as a lender credit for closing costs or to buy down your mortgage rate, and the Down Payment Grant program that gives borrowers up to $10,000 in down payment assistance
- The Community Affordable Loan Solution is a zero-down, zero-closing-cost mortgage aimed at first-time homebuyers in designated markets, including historically Black and Hispanic neighborhoods in Charlotte, Dallas, Detroit, Los Angeles, and Miami. This mortgage requires no mortgage insurance and has no minimum credit score requirement. To qualify, borrowers will need to show proof of timely rent, utility, phone, or auto insurance payments
Customer Benefits
If you're already a Bank of America Preferred Rewards client, you could get money off your loan origination fee or a discounted rate on a mortgage or HELOC.
The benefits available to you depend on what tier you are.
- Gold tier: $200 off mortgage origination fee, 0.125% HELOC rate discount
- Platinum tier: $400 off mortgage origination fee, 0.250% HELOC rate discount
- Platinum honors: $600 off mortgage origination fee, 0.375% HELOC rate discount
- Diamond tier: 0.250% mortgage rate discount when you set up autopay, 0.625% HELOC rate discount
Bank of America Mortgage Rates and Fees
In our review of Home Mortgage Disclosure Act data, we found that compared to other lenders, Bank of America's mortgage rates are lower than average. Its average fees are relatively low as well.
On Bank of America's website, you can explore the lender's current rates based on home price, down payment, and ZIP code.
In 2023, the average borrower getting a conventional loan from Bank of America paid $3,040 in origination charges, according to HMDA data. This is on the low end compared with other lenders.
Bank of America Mortgage Overall Lender Rating
Loan Types: 4 out of 5
Bank of America offers a good range of mortgage products that should meet most borrowers' needs. You can get both conventional and government-backed mortgages with this lender, as well as HELOCs.
Affordability: 4 out of 5
Thanks to its affordable mortgage offerings and homebuyer grants, Bank of America is one of the more affordable lenders available. However, some of these products are only available in certain areas.
Customer Satisfaction: 4.91 out of 5
On its Zillow lender page, Bank of America has a 4.82 out of 5-star rating, based on over 13,000 customer reviews. In their reviews, Bank of America borrowers said they liked the mortgage professionals they worked with and the fact that they were able to get a low rate. The lender also earned the No. 5 spot in J.D. Power's 2023 Mortgage Origination Satisfaction Study.
Trustworthiness: 3 out of 5
The Better Business Bureau gives Bank of America an A- rating due to recent government action regarding a consent order the bank entered into with the Consumer Financial Protection Bureau in July 2023. The consent order alleges that Bank of America illegally charged junk fees, withheld credit card rewards, and opened accounts without customers' consent. The CFPB again fined Bank of America in November 2023 over allegations that the bank's loan officers didn't ask mortgage applicants certain required demographic questions and instead falsely reported that applicants chose not to respond.
Pros and Cons of Bank of America Mortgages
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Discounts for Preferred Rewards Members
Current Bank of America account holders who are members of the Preferred Rewards program can get between $200 and $600 off their mortgage origination fee and a discounted HELOC rate, depending on what tier they are. Diamond tier members could get a 0.250% reduction of their mortgage rate.
Affordable Lender for First-Time and Low-Income Buyers
Bank of America has multiple homebuyer assistance programs available, including generous down payment and closing cost grants.
Not a Great Choice if You're Looking for a Less Common Type of Mortgage
This lender's loan offerings should meet most borrowers' needs, but if you need a more niche type of mortgage, you'll likely need to look elsewhere.
Bank of America Mortgage Application Process
To apply for a mortgage with Bank of America, you have the option to get started online, over the phone, or in person if you live near a branch.
Prequalification and Preapproval Process
If you're already under contract on a house, you'll apply for regular approval. If you're just looking to understand how much you can afford to borrow, Bank of America offers both prequalification and preapproval. All of these processes can be done online.
Prequalification takes less time since you won't need to provide as much information. You'll be asked about your income, assets, and how much you plan to put toward your down payment. Your credit will also be checked.
With a preapproval, the lender will request documentation showing how much you earn and what you have saved up. This will help them give you a more concrete estimate of how much you can borrow.
Typical Customer Experiences With Bank of America Mortgage
Business Insider looked at positive and negative customer reviews, online forums, BBB complaints, and other sources to understand what borrowers think about Bank of America's mortgage lending experience.
Bank of America Mortgage Customer Reviews Are Largely Positive, but Some Borrowers Have Issues With Large Lenders
Overall, previous borrowers who got their mortgages from Bank of America had positive things to say about their experience. Many reviewers said that the loan officers they worked with were helpful and communicative. Some also noted that Bank of America offered them great rates. This lender also ranked high in J.D. Power's Mortgage Origination Satisfaction Study, which measures customer satisfaction.
But we also saw a few complaints of poor communication, frustrating customer service, and delays in the process. Bank of America was the 16th largest mortgage lender in the U.S. in 2022, according to a CFPB report. With a larger mortgage lender, you might not always get the smoothest customer experience. This isn't always the case, and it's also possible to have a better experience with a large lender compared to a smaller, local one.
If you're worried about getting the attention you need or you want to be sure your lender takes a personalized approach to your mortgage, you might want to check out some local lenders or credit unions. But the vast majority of comments we looked at regarding the mortgage experience at Bank of America were positive.
How Bank of America Mortgages Compare
Bank of America vs. Fairway Independent Mortgage Corporation
Fairway Independent Mortgage Corporation stands out in customer satisfaction. The lender ranked No. 1 in J.D. Power's 2023 satisfaction study and has great customer reviews on its Zillow lender page.
Fairway has a few loan options that Bank of America doesn't, including USDA loans, reverse mortgages, and renovation loans. But unlike Bank of America, it doesn't offer a HELOC.
Fairway offers a $7,000 grant to first-time homebuyers in eligible areas, though you might be able to qualify for a larger amount of assistance with Bank of America. Both lenders are good options for new buyers, though Bank of America was our top pick for the best mortgage lenders for first-time buyers.
Fairway Independent Mortgage Corporation Review
Bank of America vs. Rocket Mortgage
Rocket Mortgage is another good choice for both first-time and repeat homebuyers. With Rocket, eligible borrowers can get a mortgage with just 1% down through its ONE+ mortgage program, or a lender credit up to $7,500 with the Purchase Plus program.
Rocket Mortgage also has a highly convenient online application and offers underwritten preapproval, which can help you stand out when you're making offers on homes. If a simple approval process is important to you, you might prefer Rocket Mortgage over Bank of America. Rocket also has home equity loans.
But Rocket's rates and fees are around average, while Bank of America has low average overall costs.
Bank of American Mortgage FAQs
The timeline varies for each person, but from the time you make an offer to closing, it typically takes around 45 days.
In our review of HMDA data, we found that Bank of America's mortgage average rates were on the low end compared to other lenders.
Bank of America earned the No. 5 spot in J.D. Power's Mortgage Origination Satisfaction Study, which measures customer satisfaction. In reviews, previous mortgage borrowers overall have good things to say about Bank of America's customer service.
Bank of America has a few different programs to help first-time homebuyers, including zero down and 3% down mortgages and homebuyer grants.
Yes, Bank of America offers mortgage prequalification. You can start an application online, over the phone, or in person.
There are thousands of mortgage lenders in the US, and you should shop around to find the right one for you. Bank of America is a large lender, and you might also want to get quotes from one or two smaller, local lenders to see who can offer you the best overall deal.
Why You Should Trust Us: How We Reviewed Bank of America Mortgage
For our review of Bank of America, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then we average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a large number of loan types with affordable features, have positive customer reviews, and don't have any recent public controversies.
