When you refinance a mortgage with Bank of America, you change the terms of your existing mortgage agreement to lower you rate, lower your payments or get cash from your home equity.
When you refinance a mortgage with Bank of America, you change the terms of your existing mortgage agreement to lower you rate, lower your payments or get cash from your home equity. This lender offers you several refinance programs and competitive rates.
Bank of America suggests three situations or reasons why you might opt for refinancing. The first reason is because you want to change an adjustable rate mortgage to a fixed rate. An adjustable-rate mortgage (ARM) has an interest rate that fluctuates as the national interest rate changes, while a fixed rate remains the same throughout your loan. An ARM is lower in the initial term of the loan, yet can double when it adjusts. A Bank of America refinance lets you turn an ARM into a fixed rate mortgage.
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You might choose to refinance a mortgage with Bank of America because you can no longer afford your high monthly payments. You can also opt for a cash-out refinancing, to get money for other needs or projects. Bank of America essentially pays off your existing mortgage and creates a new mortgage. This is one way to get money for home repairs and other bills. Your new payments will depend on the current mortgage rates and your credit history.
Before Bank of America agrees to refinance your loan, you must meet specific requirements. You'll need to be up to date on your payments and have at least 5 percent equity. If you have an Federal Housing Administration (FHA) loan, you're only required to have 2.5 percent equity in your home to refinance.
If your loan is through Fannie Mae or Freddie Mac and the value of your home has dropped significantly, you can refinance through the Home Affordable Refinance Program (HARP). Bank of America participates in HARP and you can get more information from the bank or through federal housing counselors.
Contact Bank of America online or via phone to request an application and apply to refinance your mortgage with Bank of America. Once you are approved, the bank will appraise your home to determine your equity. Refinancing your mortgage through Bank of America can help you get a lower interest rate or money to improve your home or use for other needs. If you want to compare your Bank of America refinance rate and terms to other national lenders' programs, go to Reply! now.