Bank of America offers loans that could help with your home, car or business.
One of America’s biggest financial service providers, Bank of America (BofA) offers a variety of loans with a simple application process and additional finance resources. It’s one of the top banks in the US and a reputable financial product provider for many Americans.
First, do I qualify?
Bank of America loans are available in all 50 states and Washington DC. To be eligible for any Bank of America loan, you must be:
- At least 18 years old (19 in Alabama and Nebraska)
- Live in the US
- Be a US citizen, resident, or non-resident alien.
To qualify for a business loan, your business must also:
- Be at least two years old.
- Generate at least $250,000 in annual revenue.
Startups might be able to qualify for an SBA loan.
What types of loans does Bank of America offer?
Bank of America loans include home mortgages, auto loans and business loans.
Home mortgage loans
When it comes to home mortgages, Bank of America offers two types of home financing:
- Fixed-rate mortgage. With this mortgage loan, your interest rate remains consistent throughout the term of the loan, allowing for predictable monthly payments over 15, 20 and 30 years.
- Adjustable-rate mortgage. This type of mortgage is characterized by an initial lower fixed interest rate for up to 10 years. After the fixed-rate period, the interest rate adjusts to the going interest rate for the remainder of the loan.
BofA provides auto loans for new or used cars. In as little as 24 hours, you receive the funds needed to pay for your car — and you may even get a discounted rate if you have a BofA checking account. BofA also works with dealer networks and can recommend one that uses BofA to finance auto loans.
Need a business loan to purchase inventory or finance the day-to-day cost of running your business? Bank of America’s business loans may be what you need, offering competitive rates and funding from $25,000 and up to $2 million.
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Why should I consider taking out a Bank of America loan?
Bank of America works to make taking out a loan easy. Here are some reasons people choose BofA:
- High-tech service. After an initial consultation with a BofA loan officer, you can create an account and upload documents, download loan disclosures, track the progress of your loan and e-sign your paperwork.
- Convenient application process. You have many ways to apply for a BofA loan, including in person at a local branch or by phone. You can schedule an appointment online for phone or in-person consultations.
- Early repayment. Once you close on an auto or home mortgage loan, for example, you can typically repay it early with no prepayment penalty in most states. Business loans allow for prepayments but may comes with a fee that depends on your specific financing.
- Co-borrowers allowed. You can typically list a spouse or partner on your loan, possibly allowing for a larger loan amount.
How much will it cost me to borrow with Bank of America?
Home mortgage loan costs
Home mortgage loans come with the most fees.
- PayPlan. PayPlan fees apply only if you make automatic payments from your checking or savings account. You have four services to choose from based on the number of automatic deductions scheduled from your account:
PayPlan 12 — no transaction fee
PayPlan 24 — $4 per draft
PayPlan 26 — $4 per draft
PayPlan 52 — $2 per draft
- Check by phone. Making mortgage payments over the telephone can cost you $15 through BofA’s automated phone system and up to $20 when collected by a representative.
- Release fees. You can pay up to $100 for to prepare and mail secure documents.
Auto loan costs
Bank of America does not charge fees to apply for an auto loan application or prepare loan documents. But depending on your state of residence, you may pay a title or state fee.
Business loan costs
The closing costs for your business loan will vary by the type and size of your credit request. When approved, a BofA representative will contact you within one business day to inform you of your credit terms and conditions.
Are Bank of America loans safe?
Bank of America is the second-largest bank in the US with a longstanding history of providing financial service. Its website is easy to use, offering customer support and encryption to safeguard information. It’s also consistently won an award for Best Overall Identity Safety by Javelin Strategy & Research for the past nine years. Beyond this, it offers resources to help customers further protect their information such as free online security tools and educational videos about how to keep your identity safe
If you’re having trouble or have questions, contact BofA customer service by phone or visit a Bank of America branch.
What does the Internet say about Bank of America loans?
Bank of America does not fare well when it comes to online ratings. It’s been accredited with the Better Business Bureau since 1949, which gives it an A- rating based on 134 customer reviews, 95% of which were negative. It does even worse on Trustpilot, getting a 5.7 out of 10 based on 22 reviews, with 55% of reviewers rating it as “Bad.”
Complaints mainly focus on poor service, both online and in person. Staff across all divisions was called incompetent, undertrained and unresponsive. It’s made a half-hearted effort to respond to customer complaints on the BBB site with a formulaic response that only seemed to infuriate people.
Reviews were marginally better when it came to loans — particularly mortgages — but there were still complaints. One customer said he had to sign one form and change his closing appointment multiple times because his customer service contact was so disorganized.
How to apply for a personal loan with Bank of America
You can apply for a home mortgage or auto loan on Bank of America’s website. For a business loan, you’ll need to contact Bank of America by phone or in person.
Generally, you’ll need to submit your full name, contact information, Social Security number, date of birth and any number of financial details. Depending on the loan you’re requesting, these financial details can include W-2s and pay stubs, bank statements, tax returns and your business’s profit/loss statements.
Read the specific requirements for the loan you’re interested in at BofA’s website.
Pros and cons of a Bank of America loan
- Low rates. Home mortgages and auto loans offer low interest rates and the option for online payments.
- Fast approvals. You may be approved in minutes for an auto loan. Other loans come with turnaround times of a few days.
- Potential discounts for current members. For example, you can get a 15% discount on an auto loan if you have a BofA checking account.
- Easy online payments. For most loans, you can manage your account and payments online.
- A lot of paperwork. As with many bank loans, you’ll need to provide a lot of documentation for approval. The good news: You may be able to do most of it online.
- You must apply to see your exact APR. Because so much goes into the APR you’re ultimately offered, you’ll need to submit an application to learn what you qualify for.
- Strong credit recommended. If your creditworthiness isn’t good to excellent, you may not be approved for a loan.
I got a Bank of America loan. Now what?
Auto loans and mortgages tend to come with a more involved process after you’re approved — you might have to purchase a car or a house. Your point of contact with Bank of America should be able to walk you through your purchase.
Once your funds are dispersed, it’s time to start thinking about repayment. You have the option of paying by phone by calling 800-215-6195, mailing a check to Bank of America, N.A., PO Box 15220, Wilmington, DE 19886-5220, in person at one of it’s branches or by setting up automatic payments through Online Bill Pay.
Online Bill Pay is the easiest option — you don’t have to worry about keeping track of when your payment is due. But don’t forget to keep an eye on your account to look out for irregularities. If you notice anything strange — or have any other questions — contact customer service as soon as possible.
I didn’t get the loan. Now what?
First, find out why you were rejected. Once you find out, take steps to make improvements to your personal finances, such as improving your credit score.
Banks tend to have tougher eligibility requirements than other lenders. If you’ve been rejected by Bank of America, you might be able to qualify with less-traditional sources of financing like online lenders or credit unions without making any changes to your personal finances. Just wait for your credit score to recover from the hit it took when Bank of America pulled a hard credit check to get the best rates.
Whether you need a home, auto or business loan, Bank of America is a place to start for personalized options at affordable rates.
If you’re interested in learning more about your options, compare the fees, rates and details of other lenders that may better suit your needs.