Bank of America Mortgage Review 2024

Bank of America mortgage overview

• Areas of service: All 50 states, plus Washington, D.C.
• Digital service: Offers the Bank of America Digital Mortgage Experience®
• Headquarters: Bank of America Corporate Center, 100 North Tryon Street, Charlotte, NC 28255
• Website: BankofAmerica.com

Bank of America rates, terms and fees

Rates

Bank of America publishes its available mortgage rates online, and it updates this information regularly. The lender even has a rate chart that lets you see tailored rate estimates based on your loan amount, down payment and ZIP code. This mortgage lender does state that its best rates and terms go to borrowers with credit scores of at least 740.

Bank of America mortgage rates are lower than some lenders but higher than what the majority of national mortgage companies offer. We base this information on the lender’s rate spread, which measures the difference between the average prime offer rate (APOR) — the lowest banks offer private customers — and the average annual percentage rate (APR) individual banks offer their customers in a given year. Higher rate spreads mean more expensive home loans, whereas a lower rate spread means a more affordable mortgage.

In 2023, Bank of America’s rate spread was 1.35 percentage points, according to data from the Home Mortgage Disclosure Act (HMDA). This rate spread was lower than lenders including Spring EQ, Alliant Credit Union and CashCall Mortgage, but much higher than Chase Bank and Wells Fargo, among other lenders.

Fees

Bank of America falls short of listing specific closing costs and fees on its website, but it does offer a closing costs calculator to give you an idea of how much you’ll pay. This calculator lets you input the purchase price of a home, down payment amount, loan term, loan type and ZIP code to get an estimate that includes points and lender fees, third-party fees, estimated prepaid taxes and insurance and estimated escrow account funds.

Bank of America mortgage costs and origination fees fall in the middle of the pack compared to other lenders, according to 2023 HMDA figures. The chart below shows how the lender compares to five other popular mortgage companies in terms of loan costs.

What discounts does Bank of America offer?

Bank of America offers its customers Bank of America Preferred Rewards. Members of this program can qualify for mortgage rate discounts and reduced origination fees. Their total savings depends on the tier of membership that homebuyers qualify for within the program.

What types of mortgage loans does Bank of America offer?

Bank of America offers a variety of home loans including:

• Conventional loans
• FHA loans
• VA loans
• Jumbo loans
• Home equity lines of credit

Conventional loans

Bank of America offers conventional home loans with a range of different terms, including 30-year and 15-year fixed-rate mortgages and adjustable-rate mortgages (ARMs). These loans are not part of a specific government program, and they can include conforming loans and non-conforming loans. Conforming loans come under maximum loan amounts that are set by the government.

Note that refinance loans as well as cash-out refinance options are available for conventional home loans through Bank of America.

Conventional loan qualification requirements

• Minimum credit score of 620
• Down payment of 5% or higher
• Typically require debt-to-income (DTI) ratio of 36% or less

FHA loans

Bank of America’s FHA loans, which are backed by the Federal Housing Administration, feature low down payment requirements. However, maximum purchase limits for homes apply and vary by county. FHA refinance loans are also available through Bank of America.

FHA loan qualification requirements

• Minimum credit score of 600
• Down payment of 3.5% or higher
• Maximum loan amounts apply

VA loans

Bank of America also offers VA loans that are partially guaranteed by the U.S. Department of Veterans Affairs. These loans offer up to 100% financing, and they have more flexible requirements for approval than some other types of home loans. Bank of America also offers VA refinance loans.

VA loan qualification requirements

• Minimum credit score of 600
• Must be an eligible veteran with a valid Certificate of Eligibility (COE)
• No down payment requirement

Jumbo loans

Jumbo loans are mortgages in amounts that exceed loan limits set by Fannie Mae, Freddie Mac and the Federal Housing Finance Agency (FHFA). These loan limits come in at $766,550 throughout most of the country in 2024, although they can be as high as $1,149,825 in areas of the country with a higher cost of living.

According to the Consumer Financial Protection Bureau (CFPB), costs for obtaining and servicing a jumbo loan tend to be higher than mortgages for smaller amounts.

Jumbo loan qualification requirements

• Stricter underwriting rules apply
• Larger down payment than a standard mortgage

Home equity lines of credit

While Bank of America doesn’t offer a home equity loan, the lender does have a home equity line of credit (HELOC). This type of financing lets homeowners use the value of their property as collateral, thus securing a line of credit they can borrow from over and over again during the initial draw period (usually 10 years). A repayment period (usually 20 years) begins after that, during which the borrower makes payments toward principal and interest until the line of credit is repaid. HELOCs through Bank of America can offer variable or fixed interest rates, and moving from a variable rate to a fixed rate is possible with no fees.

HELOC qualification requirements

• Typically requires loan-to-value (LTV) ratio of 85% or below including primary mortgage and HELOC
• Other minimum requirements not disclosed

Bank of America mortgage qualifications

 Don’t know your credit score? Get your free score on LendingTree Spring today.

How to boost your loan approval odds

National figures from the HMDA show the type of borrowers Bank of America was most likely to approve for a home loan in 2023:

• The average approved applicant through Bank of America had a loan-to-value (LTV) ratio of 60.8% across all loan types and 74.9% for purchase loans.
• Among approved borrowers, 49.7% had a debt-to-income (DTI) ratio below 40%, while 31.9% had a DTI above 43%.
• Bank of America approved 42.8% of mortgage applications for all types of loans in 2023, meaning it rejected 57.2% of applicants.

With these stats in mind, you can boost your approval odds for a Bank of America mortgage by doing the following:

• Improving your credit score to at least 600 (or 620 for a conventional home loan)
• Coming up with a larger down payment for your home (preferably at least 15% for purchase loans)
• Paying down other debts to get your DTI ratio below 40%

How to apply for a Bank of America mortgage

1. Choose your loan type

Head to the tab on BankofAmerica.com that says “Home Loans,” then click on “Mortgage” or “Refinance” to see available loan options. You may want to consider a conventional mortgage if you have solid credit and a larger down payment. You can also look at home loans that are part of a government program if you believe you could qualify, including FHA loans and VA loans.

2. Get prequalified

Bank of America makes it easy to apply for mortgage prequalification online, over the phone or in-office with a local lending specialist. You can do this online by heading to the tab that says “Home Loans” from the lender’s home page, then clicking on “Get prequalified.” Getting prequalified can help you determine how much you can afford to borrow for a home based on your credit score, income and other factors. Bank of America also lets you get preapproved for a mortgage, which is a lengthier process that requires more documentation. However, getting preapproved for a mortgage gets you a preapproval letter that’s good for 90 days.

3. Submit a loan application

You can move forward with a full mortgage application with Bank of America when you’re ready. This step also begins on the BankofAmerica.com website when you click on the tab that says “Home Loans,” then on “Apply now.” This move can help you lock in your mortgage rate as you move through the underwriting process for a home you plan to purchase. Bank of America lets applicants apply for a mortgage online, over the phone or in person with a lending specialist.

Documents you’ll need for prequalification or preapproval

• Identification
• Tax documents
• Bank statement
• Pay stubs
• Debt and asset statements
• Gift letters (if you’re using gifted funds)

Find out more about how to apply for a home loan.

Is it safe to get prequalified with Bank of America?

It’s safe to get prequalified or preapproved for a mortgage with Bank of America, although both options require a credit check. Note that prequalification and preapproval help future homebuyers determine how much they will be able to borrow, which they can keep in mind as they shop for a property. Getting preapproved can even lead to having a preapproval letter in hand, which can be valuable when it comes to getting an accepted offer on a home.

Bank of America’s customer service experience

Bank of America offers customer service for various types of home loans during typical business hours. The lender can be reached with the following contact information:

Bank of America doesn’t offer email customer support, but the lender does recommend customers contact the company via Facebook or X (Twitter) account.

Past customer reviews for Bank of America range from decent to relatively poor, as is the case with all large financial institutions. Bank of America has a rating of 1.3 out of 5 stars across more than 2,200 user reviews on Trustpilot, although this page asks customers to rate all of the bank’s products and services (not just mortgages).

How does Bank of America compare to other lenders?

LendingTree’s rating	Back to our Bank of America summary	Read our Bank of America vs. Wells Fargo comparison	Read our Bank of America vs. Chase comparison
Minimum credit score	600 to 620	Not disclosed	Not disclosed
Minimum down payment	0% to 3%	0% to 3%	0% to 3%
Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan.	1.35%	-0.22%	0.17%
Loan products and programs	Conventional FHA VA USDA Jumbo HELOC	Conventional FHA VA Jumbo	Conventional FHA VA Jumbo
Better for:	Bank of America can be a good option for borrowers with excellent credit (scores of 740 or above) who can qualify for a home loan with the best-advertised rates and terms.	Because Wells Fargo offers more competitive interest rates than Bank of America, it can be a better choice for homebuyers with great credit and strong financials.	Chase offers several home loan options with low down payment requirements, making it a good choice for first-time homebuyers who can meet lender requirements for approval.
	Get offers	Get offers	Get offers

Bank of America vs. Wells Fargo

Like Bank of America, Wells Fargo also offers a range of home loans for potential borrowers to choose from, including conventional loans, FHA loans, VA loans and jumbo loans. Wells Fargo offers several loan discounts, including a Homebuyer Access℠ grant worth up to $10,000, up to $5,000 toward closing costs and relationship mortgage discounts. National HDMA figures show that Wells Fargo offered lower average mortgage rates than Bank of America in 2023, so Wells Fargo could be a better fit for eligible borrowers who want the lowest rates possible.

→ Read more in our full Wells Fargo mortgage review.

Bank of America vs. Chase

Chase also offers a range of mortgage products to choose from, including conventional loans, FHA loans, VA loans, jumbo loans and a specialized Chase DreaMaker℠ mortgage. This lender offers several grants and discounts, including a Chase Homebuyer Grant worth up to $7,500 and up to $5,000 toward closing costs. HDMA figures show that in 2023, Chase offered lower average mortgage rates than Bank of America. Bank of America offers a range of mortgage options with low down payment requirements, which can make them better for first-time buyers.

→ Read more in our full Chase mortgage review.

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How LendingTree rated Bank of America

LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.

LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.

Bank of America’s scorecard:

Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application

= 0 points  = 0.5 points  = 1 point