Review of Bank of America Mortgages for 2022

What clients have to say about their mortgage with Bank of America

The objective qualities, such as rates, fees, and loan offerings, are evaluated by NerdWallet’s lender star ratings. NerdWallet has gathered customer satisfaction scores from J.D. Power and Zillow to evaluate the subjective experiences of borrowers with lenders.

- - According to J.D. Power’s 2021 Primary Mortgage Origination Satisfaction Study, Bank of America scored 859 out of 1,000. Origination averages 851 in the market. (Mortgage origination includes the first application and closing day.)
  - According to The U.S. J.D. Power 2022 Study on Mortgage Servicer Satisfaction, Bank of America scored 645 out of 1,000. The servicing industry standard is 607 people. A mortgage servicer handles payments for loans.
  - As of publication date, customers gave Bank of America a 4.82 out of 5-star rating on Zillow. Over 13,100 customer reviews were used to calculate the score.

The variety of loans offered by Bank of America is wide

- 5 out of 5

Among the many purchase and refinance loans offered by Bank of America are 30-year adjustable-rate mortgages with terms of 5/6, 7/6, and 10/6, as well as 15-, 20-, and 30-year fixed-rate loans. These adjustable-rate mortgages may have interest rates that fluctuate once every six months following the initial 5-, 7-, or 10-year fixed-rate periods. Additionally, it offers jumbo loans, government-backed mortgage products like FHA and VA loans, and loans for self-employed people and professionals in the medical field.

For first-time and low- to moderate-income homebuyers, The Community Homeownership Commitment of Bank of America provides goods and services to lower the cost of homeownership. Programs vary by location, and some have eligibility requirements like income. Offerings include:

- - Grants for down payments can be up to $10,000 or, in some regions, 3% of the purchase price, whichever is less.
  - Grants for closing costs: One-time expenses like title insurance and recording fees are eligible for up to $7,500 in grants. Additionally, money can be used to buy points to reduce the interest rate.
  - Mortgage under the Affordable Loan Solution: Purchasers who meet the necessary income requirements may be qualified for a 30-year loan with a 3% minimum down payment and reasonably priced mortgage insurance.
  - Community Affordable Loan Solution: This mortgage does not require a minimum credit score, mortgage insurance, a down payment, or closing costs. Before applying, buyers must finish a certification course. The pilot program is currently being offered in five cities with a high concentration of minority neighborhoods and is open to anyone, regardless of race or ethnicity.

Bank of America HELOC

The lender also provides a HELOC, or home equity line of credit. These first or second mortgages give homeowners a way to access their home equity without having to refinance or sell their property. A second mortgage can be used to get money for home renovations, tuition, or debt consolidation.

Bank of America gives customers Preferred Rewards status, automatic payment setup, initial withdrawal, and several other options to qualify for HELOC rate reductions.

Bank of America mortgage ease of application

- - 4 out of 5

You can apply and get prequalified using Bank of America’s digital interface through its website or mobile app. You can also submit an application over the phone or in person at a Bank of America location.

The Home Loan Navigator portal from Bank of America allows borrowers to maintain contact throughout the lending process. You can upload documents, download loan disclosures, and keep track of your loan status.

Rates And Fees For Mortgages From Bank Of America

- - 4 out of 5
  - For average origination fees, Bank of America scores 3 out of 5.
  - For average mortgage interest rates, Bank of America receives a perfect score of 5.

Borrowers should consider the balance between lender fees and mortgage rates. Paying upfront fees can lower your mortgage interest rate, though this is only sometimes the case. Some lenders will impose higher upfront fees to make their advertised interest rate more appealing; others will impose higher upfront fees. Simply put, some lenders impose higher up-front costs.

Transparency In Mortgage Rates At Bank Of America

- 4 out of 5

The interest rates for a number of the lender’s fixed- and adjustable-rate mortgage products are shown on the lender’s website, along with the annual percentage rate, any assumed discount points, and an approximate monthly payment. Enter your purchase price, down payment, and ZIP code for more individualized rates.

Bank Of America Mortgage Alternatives

Here are some lenders that are similar to those we reviewed for borrowers.

Another significant national bank that provides grants and special programs for first-time homebuyers who meet the requirements is Chase. Wells Fargo has a dedicated lending team for customers interested in jumbo loans.