Bank of America Mortgage Refinance Review

Bank of America offers a wide variety of mortgage refinance loans, including conventional loans of up to five million, and government-backed FHA and VA loans. The bank also offers a low-down-payment mortgage called the Affordable Loan Solution. Though this is destined to new mortgages rather than refinances, this loan only requires a 3 percent down-payment and has no mortgage insurance premium. It also has an innovative combination loan that incorporates a first mortgage with a second layer of home equity, for a higher-than-average percentage of the property's appraisal value. Bank of America's rates, as posted on its website, tend to run slightly below average, but this can completely change, depending on each consumer’s specific situation. However, it’s worth checking the website, since it can offer personalized refinance rates without providing any personal data. As one of the largest banks in the United States, Bank of America can offer a consistency of rates that other, smaller institutions may not be able to.

Bank of America's application process is quite expedited, something which we look at favorably—the idea is that you can get on with your life as quickly as possible, rather than waiting for months. The bank advertises that qualified borrowers who have submitted all the appropriate paperwork can expect to have their loan processed and approved considerably quicker than the industry standard. This is contradicted by some customer complaints, however, which claim the opposite, mentioning slow processing times and delayed closings. Though its website offers live chat, operators simply collect information and then refer customers directly to loan officers. Bank of America’s recently debuted Home Loan Navigator is also particularly helpful for keeping track of your mortgage, serving as an online mortgage portal accessible on your computer or via mobile app. The tool allows consumers to create an account, upload documents and download loan disclosures, track the full progress of their mortgage, and sing paperwork digitally with legally binding e-signatures. The bank’s phone system is easy to navigate, and it offers in-house video conferencing with loan officers at 700 branches. This can be especially useful in the Midwest, where other banks have a larger physical presence. Finally, Bank of America’s website has a wealth of helpful resources, such as calculators for estimating refinance payments, affordability, and closing costs, as well as a tool for estimating your home’s value (via the Bank of America Real Estate Center).

Bank of America has been in business for nearly 150 years, since 1874, though its mortgage refinance department is younger. It operates worldwide, in over 35 countries across Europe, Africa, Asia Pacific, the Americas, and the Middle East. This size and considerable longevity can present problems that smaller banks don’t otherwise have to deal with—the bank is frequently involved in high-profile litigations that result in billions of dollars in costs, potentially passed on to its customers as higher interest rates and fees. Between 2008 and 2014, Bank of America has been faced with $91.2 billion in settlements and legal fines—over 51 cases of judgments, settlements, and regulatory fines. Almost two-thirds of the $43 billion imposed in mortgage lender fines since 2010 are attributed to Bank of America, on its own. Many potential borrowers make the mistake of not looking at a bank’s reputation and financial strength, though this is crucial, as it provides protection for the consumer during any period of economic precariousness. This is particularly relevant considering Bank of America’s legal issues over the past decade or so—despite these, the bank has excellent profitability ratings and high-quality assets, although it could have a higher capital ratio. Another important indicator of reputation is how a company treats its customers. As of February 2019, Bank of America has 46,635 complaints registered with the CFPB. This is considerably higher than any other lender we evaluate, though the company's size and reach must surely be taken into consideration. On the other hand, comparably sized Wells Fargo has 10,000 fewer complaints than Bank of America, give or take, though it’s serviced approximately double the number of mortgages. Negative reviews concentrate on issues with communication and customer service, as well as delayed processing times. Of course, each consumer’s experience is unique, and depends quite heavily on their specific loan officer. This may explain why according to the most recent J.D. Power Primary Mortgage Customer Satisfaction Survey from 2018, Bank of America was in fifth place, only one point behind its closest competitor, PrimeLending.