If you are having difficulty keeping up with your current mortgage, the Bank of America Mortgage Refinancing program might be able to help. There are many reasons to resort to mortgage refinancing. For one, you might need to lower monthly repayments to make way for other financial goals. Or maybe, you are thinking of switching to a fixed-rate mortgage.
Whatever your reasons are, reassessing your current mortgage can provide you the opportunity to plan ahead and save a lot of interest. Bank of America offers a variety of refinancing options. By scheduling an appointment with a home loan specialist, you can choose which type of refinancing you need. The general rule of thumb is to switch to the fixed-rate mortgage when the rates are low.
Our editors have looked into the Bank of America mortgage refinancing program and come up with some details you need to know. They’ve compiled a variety of options the bank provides below. Make sure you go through all of the details before deciding on which option is best for you.
Types of Refinancing
Bank of America gives you several option to adjust your monthly mortgage payments. You should choose the method that is best suited to your current income and lifestyle. Having a good idea of your future earnings and lifestyle will also help you make a better decision. So let’s have a look at the Bank of America refinancing options available to you.
If you want to be safe and pay off an existing mortgage before resorting to a new mortgage loan, the cash-out refinance is best to choose. Contrary to other types, this option gives you full control over the term of the loan, type of loan, interest rate and payment amortization schedule.
The loan proceeds are used to pay off the existing mortgage then the remaining funds are yours to use. Choosing the cash-out to refinance gives you a choice whether you want to switch to adjustable-rate mortgage or fixed-rate. Upon closing, you will incur similar costs from your original mortgage. To put it simply, the cash-out refinance is like applying for a new mortgage, after several years of paying off an existing loan.
Home Equity Line of Credit
Another type of mortgage refinancing is the home equity line of credit. Under this option, you can take out a separate mortgage loan, separate from the first mortgage. This will enable you to withdraw from your available line of credit during the draw period of ten years.
The home equity line of credit lets you pay the principal amount with interest monthly. After the draw period, the repayment period begins. Typically, terms are up to 20 years. The only downside of this option is the variable interest rate. There is no standard or fixed interest as it changes according to the US Prime Rate published by the Wall Street Journal.
How to Apply for Bank of America Mortgage Refinance
After going through all of the above options, you may decide that you want to go ahead and apply. You can do this by selecting which program is best for you. You can complete the application at either a Bank of America branch or online, you can also do it by phone. If you want to get approved faster, you can use the preapproval tools like the calculator to check the rates and terms of the new mortgage and whether or not you qualify.
What are the Requirements for Bank of America Refinancing.
Applying for a refinance loan is almost the same as regular loans. You need to provide the lender with documentation that will verify your employment history, creditworthiness, and financial situation.
Other requirements include:
- W-2s for the last two years
- Pay stubs covering latest payment
- Bank statements for all financial accounts and investments
Depending on the lender, they may also run your credit report to see your score. In addition to the documentation mentioned, expect some lenders can ask for other details of your employment.
What are the Fees for Bank of America Mortgage Refinancing?
Rates for a refinance mortgage vary, usually depending on the term.
- 30-year Fixed — 892% APR or $926 monthly repayment
- 20-year Fixed — 817% APR or $1,173 monthly repayment
- 15-year Fixed — 363% APR or $1,393 monthly repayment
How to Contact Bank of America
Schedule an appointment with a refinance mortgage specialist to get detailed assistance on your financing options. You can dial BoA at 866-800-3221 Mon-Fri 8 AM to 10 PM and Sat 8 AM to 6:30 PM. If you have other concerns, BoA’s main office is located at the Bank of America Corporate Center, 100 North Tryon Street, Charlotte, North Carolina, USA.
Apply for a refinance mortgage today and enjoy lower monthly repayment and fixed interest rates. Make sure to coordinate with the Bank of America to know more about your refinancing options.
Disclaimer: There are risks involved when applying for a mortgage. Please see the bank’s Terms and Conditions page for more information.