If you've finally decided to take the plunge into home ownership, you might want to check out a Bank of America Mortgage. As we all know, purchasing a home is a major investment so it is something people think about hard and long before taking the plunge.
You might be purchasing a property to live in or as a source of income. Whichever option you choose, you probably aren't going to want to put up cash. A mortgage gives you a chance to buy that home without having to run through all of your savings. You will be required to pay a portion of the cost of your home but not the full amount. And then once you've paid your share, the bank will help you secure the rest of the money you need for you property.
Since mortgages make it easier for more people to become homeowners, it is a method most people choose to investigate. If you’re one among them, chances are you might find it difficult trying to decide which mortgage you should apply for since there are so many. Our editors have looked into the Bank of America Mortgage program and have come up with some details. Make sure you read everything below before you decide whether or not a Bank of America Mortgage is right for you.
In order to arrive at the perfect option that will help finance your new home, it’s always best to have a quick check on the different mortgage products available in your nearby bank. To help you with that, we have prepared a brief guide on the different Bank of America home loan types, as well as the rates that come with each of them. Take a look.
Bank of America Home Loan Types to Consider
Fixed-rate mortgages
As the name implies, fixed-rate mortgages promise a fixed interest rate for the entire loan term. This means that your mortgage interest rate will stay the same for the entire duation of the loan. That also means your monthly payments of principal and interest will also stay the same.
This type comes as the perfect option for people who plan to stay in their homes for several years and prefer a consistent and stable principal and interest payment.
Depending on your preference, you can choose to avail of this home loan in a 15-year, 20-year, or 30-year terms.
Adjustable-rate mortgages (ARM):
In contrast to the first product, the adjustable-rate mortgage comes with unfixed interest rates. This means that your monthly interest rate, as well as your total monthly payment of principal and interest, may alter periodically. That alteration depens on changes in a corresponding financial index that's tied with the loan.
It is best for families who only plan to stay in the home for a short time. And they prefer an initial monthly payment that is lower when compared to a fixed-rate mortgage. The product can be availed at a 10/1 ARM variable, a 7/1 ARM variable, or a 5/1 ARM variable.
FHA and VA loans
These products refer to the government-insured mortgage loans being offered by the Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs (VA) to current or former members of the U.S. military or National Guard.
Among the perks that come with these options include having low down payment, having the option to choose fixed-rate loans, and flexible qualification guidelines (for VA loans).
Jumbo Loans
As the name implies, jumbo loans refer to loans that exceed the conforming loan limit in a particular county, which is currently set at $484,350 for a single-family home in all states, except Hawaii and Alaska and a few federally designated high-cost markets, which score at $726,525.
Compared to other home loan types, this product usually comes with higher interest rates. It also comes with stricter underwriting rules, and larger down payments.
Affordable Loan Solution mortgage
Designed to cater to those who are unable to provide large down payments for their new home, the affordable loan solution mortgage promises a fixed rate with a down payment that can be as low as 3%.
Among its main selling points include its competitive rates with low down payments and available cost-saving programs. This mortgage also doesn’t require mortgage insurance. However, it may set a particular maximum income and loan amount limits, depending on your location.
What are the Fees for a Bank of America Mortgage?
A Bank of America mortgage loan can run from a minimum of $60,000 to a maximum of $2.5 million. You will need to submit a down payment of at least 5% of the purchase price of your new home. You can pay more if you want to, which will mean less interest overall.
That means that if you were to get a home loan with a loan price of $250, 000 at a 15-year term, you will be subjected to a 2.875% rate and 3.229% APR. That brings the total to a monthly payment of $1,369. To learn more about customized rates, you can visit the official site of the bank.
On the site you will find a mortgage calculator to help you determine your rates. From there, you will only need to provide some information like your preferred purchase price. Other things you will fill in are down payment amount and desired mortgage term length. All of that information will help you determine your monthly payment.
Just do your homework
Have you decided which loan type best suits your situation? Surely, getting a new home may feel like an overwhelming process, but it doesn't have to be. In order to land the right loan to finance your home sweet home, be sure to review all of the mortgage options available. There are many opportunities on the market with different interest rates and borrowing types. You will be sure to find the right one for you.
How to Contact Bank of America
Head office
Bank of America Corporate Center,
100 North Tryon Street, Charlotte, North Carolina, USA.
You can reach Bank of America at 1-866-800-3221
Disclaimer: There are risks involved when applying for a mortgage. Please see the bank’s Terms and Conditions page for more information.
