Is Bank of America a cheap or expensive mortgage lender? To help you shop for a mortgage, we compare the interest rates and closing costs charged by Bank of America to those of other lenders for a comparable set of borrowers. Here is our review of Bank of America nationally:
| Review Item | Bank of America |
|---|---|
| Interest Rate | lower than other lenders (-0.19%) |
| Loan Related Closing Costs | lower than other lenders (-$636) |
| National Rate and Closing Cost Star Rating | (4.5) |
On average, Bank of America’s interest rates were lower than those of other lenders (-0.19%). Its loan related closing costs were also lower than those of other lenders, with a difference of -$636. Overall, combining interest rates and closing costs we estimate that Bank of America tends to be a cheap lender, and give it a National Rate and Closing Costs Rating of 4.5 out of 5 stars. This is an excellent rating and places it among the top 15% of lenders nationwide.
We maintain our independence by not accepting any money from the mortgage lenders we review. To visit Bank of America, check out its website at: https://www.bankofamerica.com/.
Bank of America’s Rate Review by City
Mortgage lenders often set different rates in different geographical markets. For our list of the top mortgage lenders by city, click here. In particular, among the cities we track Bank of America was most active in:
In addition, Bank of America is our top ranked/best mortgage lender in terms of interest rate and closing costs in:
- Jersey City, NJ, for FHA mortgages
- New York, NY, for FHA mortgages
- Seattle, WA, for FHA, and Jumbo mortgages
- Chicago, IL, for FHA mortgages
- Phoenix, AZ, for Jumbo mortgages
- Boston, MA, for Jumbo mortgages
- Charlotte, NC, overall
- Houston, TX, for FHA, and Jumbo mortgages
- Dallas, TX, for FHA, and Jumbo mortgages
- Miami, FL, for FHA, and Jumbo mortgages
- Tampa, FL, for FHA, and Jumbo mortgages
- Philadelphia, PA, for FHA mortgages
- Sterling Heights, MI, for FHA, and Jumbo mortgages
- Las Vegas, NV, for FHA, and Jumbo mortgages
- Orlando, FL, for FHA, and Jumbo mortgages
- Baltimore, MD, for FHA mortgages
- Portland, OR, for Jumbo mortgages
- Sacramento, CA, for Jumbo mortgages
- Raleigh, NC, overall
- Yonkers, NY, overall
Bank of America’s Rate Review by Mortgage Type
Mortgage lenders also tend to charge different interest rates and closing costs depending on the type of mortgage. In our data, Bank of America originated Conforming, FHA, Jumbo and VA mortgages for new home purchases and refinances. Its average interest rate and total loan related closing cost difference relative to other lenders by mortgages type is as follows.
| New Purchase Mortgages | Conforming | FHA | Jumbo | VA |
|---|---|---|---|---|
| Interest Rate Difference | -0.27% | -0.22% | -0.18% | -0.02% |
| Loan Related Closing Cost Difference | -$717 | -$937 | -$708 | -$37 |
| Cost Adjusted Rate Difference | -0.32% | -0.30% | -0.19% | -0.02% |
| National Star Rating |
| Refinance Mortgages | Conforming | FHA | Jumbo | VA |
|---|---|---|---|---|
| Interest Rate Difference | -0.10% | -0.01% | -0.11% | +0.01% |
| Loan Related Closing Cost Difference | -$430 | -$73 | -$1036 | -$25 |
| Cost Adjusted Rate Difference | -0.12% | -0.02% | -0.13% | +0.01% |
| Average Star Rating |
As a summary, Bank of America is cheap for Conforming, FHA and Jumbo purchase mortgages. It is similar to other lenders for VA purchase mortgages. For refinancing, Bank of America is cheap for Conforming and Jumbo mortgage refinance. It is similar to other lenders for FHA and VA mortgage refinance. Nevertheless, individual circumstances can matter a lot for mortgage rates, and we always recommend shopping among several of our top mortgage lenders in your area before signing.
Other information about Bank of America:
Registered city and state: Westlake Village, CA, 91361
Regulator: Consumer Financial Protection Bureau (CFPB)
Top holder: BANK OF AMERICA CORPORATION
* Source of the data is Federal Financial Institutions Examination Council (FFIEC) and is for mortgages originated in the past year. Our comparable mortgages analysis controls for Bank of America’s distribution of loan term (e.g. 30 year vs 15 year), loan-to-value (LTV), debt-to-income (DTI), loan amount, loan program (e.g. Conforming/FHA), loan purpose (e.g. purchase/refinance), and commuting zone. Cost adjusted rates were computed based on each percent of the loan amount in above average loan related closing costs being worth +0.15 of a percentage point in interest rate. Furthermore, the amounts are regularized using a Bayesian approach to control for small samples.