Knowing how different loans work is important for anyone who is looking to own a house or want a loan to buy a car. Understanding different loan products will help you make an informed decision and strengthen your finances.
This is why Bank of America offers some of the best auto and mortgage loans in the country. It has a wide array of options that cater to different groups to get the best possible deals.
Find out more about the Bank of America loans, how to apply, benefits, and more in this article.
- Owning a Home Is Now Easier
- Check Out a Wide Array of Mortgage Loan Choices
- How You Can Purchase a Car with the Help of Bank of America
- Discover Car Financing Options
Owning a Home Is Now Easier
The Bank of America offers a wide variety of loan products, including mortgage loans, to help with financing the need for homes.
The bank even provides a wide variety of specialized loan programs designed to meet the different needs of specific groups of borrowers. Each program has its own perks that will make purchasing a home a lot easier and a better experience for everyone.
When applying for a mortgage loan, you will need to provide information about your income, assets, and credit history. The online application process is much faster and easier to apply for a mortgage loan as it can be done within the comforts of your own home.
Pros and Cons of Bank of America Mortgage Loans
The Bank of America offers very competitive interest rates that allow borrowers to save money on their mortgages. They offer all the loan options which are discussed in further detail down below thus allowing borrowers to make decisions based on their financial capacity.
The bank even provides different resources about mortgage lending so borrowers can make informed decisions. You can easily apply through the online portal so you don’t have to wait in line at the local bank just to submit an application.
Check Out a Wide Array of Mortgage Loan Choices
As mentioned before, there are different types of mortgage loans for specific groups of people.
Fixed-rate mortgages are the most popular mortgage loan type as they have a steady interest rate throughout the entire loan duration. Adjustable-rate mortgages or ARMs usually start with a lower interest rate but they can increase or decrease over time depending on several factors.
FHA loans are designed for borrowers who have limited finances and require a lower down payment as well as a more flexible qualification than the traditional ones. VA loans are for eligible active duty and retired military personnel.
Home Equity Lines of Credit or HELOCs offer flexibility and security by allowing you access to funds when needed at different interest rates.
Comparing the Bank of America Mortgage Loan against Wells Fargo
We have tried to compare the Bank of America mortgage loans against many other popular banks in the US like Wells Fargo and Better Mortgage. All three offered the same minimum down payment percentage of 0% to 3% with Better Mortgage slightly higher, at 3.5%.
Almost all of them require the same minimum credit score for you to apply at 620. All three share almost the same loan types except Better Mortgage does not offer any Home Equity loans for their customers.
While Bank of America and Wells Fargo are comparable, the fact that the Bank of America offers the standard products and even shares resources about mortgage lending to properly educate you means it’s a win for any borrower.
How You Can Purchase a Car with the Help of Bank of America
Apart from mortgage loans, the Bank of America also offers auto loans for its millions of customers.
This helps them finance the purchase of either new or used cars with very competitive rates starting at 5.39% for new vehicles and 5.59% for used cars. You get to enjoy a discounted 0.5% interest rate depending on the tier you are if you have the Preferred Rewards program.
The best part about this is that you get these fixed rates for a 60-month term so you’ll always pay the same amount every month. To apply, you’ll need to provide proof of insurance, car details, your income and employment history, assets, liabilities, and more.
The bank will then review your application and determine if you qualify for the loan.
Learn More about the Preferred Rewards Program
The Bank of America auto loan is designed to make your application and payment a hassle-free experience.
With all the complicated math and numbers regarding APR and interest rates, their official website makes it easier for you to calculate your loan through their auto loan calculator.
You can also enroll in the Preferred Rewards program where you’ll get even more discounts depending on your tier, starting at Gold with 0.25% to Platinum with 0.5%.
Discover Car Financing Options
A Bank of America auto loan gives you the option of financing your car. But financing your vehicle purchase will increase the overall cost of your vehicle as you will need to pay for the car and the interest accrued on top of it.
If you already have an auto loan, try to consider refinancing your car into a new loan since it usually lowers your monthly payments.
The best part about the Bank of America auto loan feature is that it also features a refinance calculator to help you compare your current loan with a potential new loan that can save you more money.
How Bank of America’s Car Loans Compare
When compared to competitor’s car loans, the Bank of America auto loan remains on the top of the list, especially when against Capital One. Capital One offers 5.79% APR which is much more than Bank of America’s 5.39% without even considering the Preferred Rewards program discount.
The terms can reach up to 60 months while Capital One offers 36 months up to 72. Where Bank of America auto loans edge out the competition is with its loan amount – you get a minimum of $7,500 while Capital One starts at only $4,000.
You can also purchase from private parties with the Bank of America auto loan while you can’t with Capital One.
With its wide array of auto loan and mortgage loan options, there is always something for every customer with the Bank of America to help achieve their financial goals. The flexible terms, competitive rates, and helpful resources make Bank of America the best when it comes to providing loan services to its customers. Contact Bank of America at 800-215-6195 or visit their main address at Bank of America Corporate Center, 100 North Tryon Street, Charlotte, NC 28255.
Note: There are risks involved when applying for and using credit. Consult the bank’s terms and conditions page for more information.