If you’re thinking about buying a home or refinancing, Bank of America is likely on your radar. As one of the biggest lenders in the country, it offers a mix of digital convenience, in-person support, and well-known loan programs. But that doesn’t automatically mean it’s the best fit for every borrower.
This review breaks down everything you need to know about Bank of America’s mortgage offerings, including current rates, fees, loan options, and borrower perks. You’ll also see how it compares to other major lenders so you can make a confident decision before applying.
By the end, you’ll have a clear picture of whether Bank of America deserves a spot on your shortlist—or if you’d be better off exploring other lenders.
Mortgage Products Bank of America Offers in 2025
Bank of America provides a complete range of home loan products suited for both first-time buyers and experienced homeowners. Whether you want predictable payments or more flexibility, there’s likely an option that fits your needs.
Fixed-Rate Mortgages
A fixed-rate mortgage keeps your interest rate and monthly payment the same for the entire term of the loan. Bank of America offers 30-year, 20-year, and 15-year terms, making it easier to plan your long-term budget with confidence.
Adjustable-Rate Mortgages
Adjustable-rate mortgages, or ARMs, start with a lower interest rate that adjusts periodically after an introductory period. Common options include 5/1, 7/1, and 10/1 ARMs. These loans can be appealing if you expect to sell or refinance before the adjustment period begins.
Affordable Loan Solution®
This program is designed to help qualified borrowers buy a home with as little as 3% down. It targets those with steady income and good credit who may not have a large amount saved for a down payment.
FHA, VA, Jumbo, and Doctor Loans
Bank of America supports several government-backed and specialized mortgage programs:
- FHA loans: Designed for buyers with lower credit scores or limited down payments.
- VA loans: Available to eligible veterans, active-duty service members, and some surviving spouses with no down payment requirement.
- Jumbo loans: For home purchases that exceed conventional loan limits, often used for higher-value properties.
- Doctor loans: Tailored for medical professionals who have high earning potential but limited savings due to student loans.
Refinancing and Cash-Out Refinancing
Homeowners can refinance their existing mortgage to lower their rate, shorten their term, or take cash out based on home equity.
Home Equity Lines and Loans
For those who want to access the equity in their homes, Bank of America offers home equity lines of credit (HELOCs) and fixed-rate home equity loans. These can help fund renovations, consolidate debt, or cover large expenses.
Bank of America’s Current Rates and Pricing Structure
Bank of America’s mortgage rates tend to align with national averages. The bank updates its rates daily, and Preferred Rewards members may qualify for special discounts or reduced fees.
Typical Rates by Loan Type and Term
While rates change frequently, here’s an example of what borrowers might expect based on current market averages.
| Loan Type | Interest Rate | APR | Points | Notes |
|---|---|---|---|---|
| 30-Year Fixed | 6.50% | 6.62% | 0.50 | Standard conventional loan |
| 15-Year Fixed | 5.90% | 6.04% | 0.50 | Faster payoff, higher monthly payment |
| 5/1 ARM | 6.10% | 7.00% | 0.75 | Adjusts after 5 years |
APR vs. Nominal Rate
The annual percentage rate, or APR, includes both the interest rate and certain lender fees. This gives borrowers a more complete view of what the loan will cost over time.
Points, Fees, and Lender Credits
Bank of America allows borrowers to buy discount points to reduce their rate or accept lender credits to offset closing costs. The right choice depends on how long you plan to keep the loan.
Borrower Profile Factors
Rates vary based on several factors, including credit score, down payment size, loan amount, and debt-to-income ratio. A higher credit score and larger down payment usually lead to better pricing.
Fees, Closing Costs, and Other Charges
Bank of America is transparent about its fees and provides detailed loan estimates early in the process. Borrowers can expect several standard costs when taking out a mortgage.
Common Fees
These include application, origination, underwriting, and processing fees that cover the cost of setting up and approving your loan.
Appraisal, Title, and Escrow Fees
Third-party costs such as appraisal, title search, title insurance, and escrow setup will vary by location but generally apply to all mortgages.
Discounts for Preferred Rewards Members
Customers who participate in Bank of America’s Preferred Rewards program can qualify for reduced origination fees or other financial incentives.
Average Total Closing Costs
On average, closing costs range from 2% to 5% of the total loan amount. These costs include lender and third-party fees combined.
| Fee Type | Typical Range | Bank of America Example |
|---|---|---|
| Origination | 0.5%–1% of loan | 0.75% |
| Appraisal | $500–$800 | $650 |
| Title & Recording | $1,000–$1,500 | $1,200 |
| Total Estimated Closing | 2%–5% of loan | ~3.5% typical |
Digital Tools, Application Process, and User Experience
Bank of America has invested heavily in digital tools to make the mortgage process smoother. Borrowers can complete most steps online but still have access to in-person help when needed.
Home Loan Navigator®
This online platform allows borrowers to upload documents, sign disclosures, and monitor progress in real time. It simplifies communication and keeps you updated throughout the process.
Prequalification and Preapproval
The online prequalification tool gives a quick estimate of how much you might borrow. Preapproval takes it further, requiring documentation and a credit check to confirm eligibility.
Mobile App and Online Tracking
Borrowers can manage their application, check status updates, and communicate with loan officers directly through the Bank of America mobile app or website.
In-Person Support
Those who prefer working face-to-face can visit a branch for personalized help from a loan specialist.
Processing Time
Most Bank of America loans close in about 30 to 45 days, depending on the loan type and how quickly documents are provided.
Customer Experience and Feedback
Reviews often highlight the ease of the online process and the convenience of digital document management. Some borrowers note occasional delays during underwriting, but overall satisfaction remains solid—especially among those with existing Bank of America accounts.
Pros & Cons of Choosing Bank of America in 2025
Bank of America’s mortgage program has clear strengths but also areas where it may not be the best option.
Strengths
- Wide loan selection: Offers everything from conventional to government-backed and specialty programs.
- Strong digital tools: The Home Loan Navigator® simplifies the process from start to finish.
- Preferred Rewards benefits: Members can earn fee discounts and interest rate reductions.
- First-time buyer support: Programs like the Affordable Loan Solution® make homeownership more accessible.
Weaknesses
- Average processing speed: Underwriting can take longer than with some online lenders.
- Limited flexibility: Smaller lenders may offer more customized solutions.
- Mixed customer service reviews: Experiences vary depending on branch and loan officer.
- No USDA loans: Rural homebuyers will need to look elsewhere.
Bank of America vs. Competing Mortgage Lenders
Here’s how Bank of America stacks up against several major competitors in 2025.
| Lender | 30-Year Fixed Rate | Closing Costs | Digital Tools | Best For |
|---|---|---|---|---|
| Bank of America | 6.50% | 2%–5% | Home Loan Navigator® | Existing customers and first-time buyers |
| Rocket Mortgage | 6.45% | 2%–5% | Industry-leading digital platform | Speed and convenience |
| Better Mortgage | 6.48% | 2%–4% | Fully online process | No lender fees |
| Chase | 6.55% | 2%–5% | Strong digital tools and in-branch service | Established banking clients |
| Wells Fargo | 6.58% | 2%–5% | Full-service experience | In-person support |
Bank of America competes closely with other national banks and online lenders. While not always the lowest in rates, it stands out for its hybrid model—offering both digital efficiency and branch accessibility.
Who Bank of America Is Best For
Bank of America is a solid choice for borrowers who value convenience, want to manage their loan alongside existing accounts, or qualify for Preferred Rewards discounts. It’s also appealing for first-time buyers who need low down payment options and clear guidance throughout the process.
Borrowers focused purely on the lowest possible rate or a faster closing timeline might find better fits with online-only lenders that specialize in rapid approvals and minimal fees.
How to Apply for a Mortgage with Bank of America in 2025
The application process is straightforward, whether you apply online or in person.
- Step 1: Get prequalified: Use the online tool for an initial loan estimate.
- Step 2: Gather documents: Prepare income verification, tax returns, and asset statements.
- Step 3: Submit your application: Complete it online or at a branch.
- Step 4: Underwriting: Bank of America reviews your credit, income, and property details.
- Step 5: Closing: Review and sign final documents, then receive your keys or refinance funds.
Final Thoughts
Bank of America remains a competitive mortgage lender in 2025, especially for existing customers and first-time buyers who value easy digital tools and reliable support. While it may not always have the lowest rates or fastest processing, it delivers a dependable experience with nationwide access and a wide range of loan options.
If you already bank with them or qualify for Preferred Rewards, Bank of America is worth a serious look. If you prioritize speed or a lower rate above all else, comparing offers from online lenders like Rocket Mortgage or Better Mortgage may be a smarter move.