Bank of America Mortgage Review 2023

Pros and cons

Bank of America overview

Bank of America is the second-largest bank in the U.S. Its financing products include mortgages, refinancing and home equity lines of credit (HELOCs), offering both preapprovals and prequalifications, with “rapid preapproval” available to online applicants. As an institution, Bank of America is over 240 years old and offers checking and savings accounts, auto loans, credit cards, mortgages and investment products. The bank also provides loans to businesses through its corporate banking division, conducts investment banking and offers insurance and asset management. It is headquartered in Charlotte, North Carolina, and has 3,900 branches.

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Bank of America is good for

Borrowers who are already banking customers, or looking to work with a major lender with branches across the country

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Breakdown of Bank of America overall score

• 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, 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.

Methodology

To determine a mortgage lender’s Bankrate Score, Bankrate’s editorial team rates lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews. Here is our full methodology.

Affordability: 5/5

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: 4/5

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, which are necessary 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, not ethnicity or race.)

For homeowners, Bank of America can also help with refinancing or tapping home equity for cash.

Borrower experience: 4.7/5

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; however, on Trustpilot, it’s rated 1.4 out of five stars, but many of the reviews are not mortgage-related. In 2021, J.D. Power ranked the bank No. 6 and No. 7 for customer satisfaction in mortgage origination and servicing, respectively.

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 (purchase or refinance), 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.

You can reach customer service through email, online or over the phone at 800-270-5746, Monday through Friday from 8 a.m. to 10 p.m. ET or Saturday, 8 a.m. to 6:30 p.m. ET.

Refinancing with Bank of America

Borrowers can view current refinance rates on Bank of America’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.

Alternatives to Bank of America

• Rocket Mortgage review – For a large, online-only lender you can apply with directly
• Lower mortgage review – For an easy-to-navigate online process and competitive rates
• Mr. Cooper mortgage review – For more niche mortgage products