If you currently have a vehicle loan, you might wonder if refinancing is a good idea. Refinancing can save you money by lowering your interest rate, which lowers your monthly payment. You might also be able to stretch out the term of your loan, which would reduce your monthly payment. Many auto financing options are available, from traditional banks and credit unions to online lending platforms. As the second-largest financial institution in the U.S., Bank of America is an option to consider for your refinance.
What Is Bank of America?
In 1904, Amadeo Peter Giannini opened the Bank of Italy in San Francisco, which eventually became the Bank of America (BOA). BankAmericard, the first bank credit card, was issued in 1958 through Giannini’s holding company, Transamerica Corporation, which owned BOA at the time. BOA is now part of Bank of America Corporation, formed by NationsBank’s acquisition of BOA in 1998.
BOA offers many personal financial services, including checking, savings, credit cards, home loans, and auto loans. It also provides small business solutions such as loans, credit card payment acceptance, payroll services, cash flow management, and remote deposits. BOA offers financial planning and wealth management services and the Bank of America Institute, providing institutions and businesses with powerful financial insights. Euromoney Magazine named BOA the World’s Best Bank for 2022. BOA serves everyone from individuals to large corporations with a full range of financial services.
What Is an Auto Refinance?
Refinancing of any type means replacing your current loan with a new one. An auto refinance can lower your rate or extend your loan term to lower your monthly payments. You might pay more overall interest, so you must weigh the pros and cons of a refinance before signing the loan papers. Another aspect to consider is whether your current vehicle loan has any prepayment penalties. If it does, add these into your calculations when determining if a refinance will save you money in the long run.
If you owe more on your existing auto loan than your vehicle’s current value, you can still qualify for a refinance, but you might need to pay the difference between the amount owed and the value. This additional upfront cost can make a refinance cost prohibitive. Know the value of your vehicle as you explore refinancing options.
Base your decision to refinance your vehicle on your current needs. If you’re in a position where you can no longer afford your loan payment, refinancing could be the only way to save your vehicle from repossession. In that case, the increased overall interest could be worth it.
Bank of America Auto Refinance
You can refinance your vehicle loan for your used or new car through Bank of America. BOA will not refinance vehicles used for business or commercial purposes. The minimum loan amount is $7,500 ($8,000 for Minnesota), with annual percentage rates (APR) as low as 4.39% for customers with good credit. If you have bad credit, you can add a co-signer to get better interest rates through BOA. Loans are available for 48 to 72 months with no application fee or prepayment penalty. Several factors will determine your APR, including:
- Loan amount requested
- Loan term in months
- Vehicle age
- Credit history
If you’re currently a BOA customer, you can qualify for discounts through the Preferred Rewards program. The program offers three levels based on the combined balances of your BOA accounts: Gold, Platinum, and Platinum Honors. Discounts for Bank of America auto refinance loans for Preferred Rewards customers are 0.25%, 0.35%, and 0.5%, respectively.
Requirements for Bank of America Auto Refinance
U.S. citizens age 18 and older are eligible for a Bank of America auto refinance. For a vehicle to qualify, it must have fewer than 125,000 miles and be less than 10 years old. Your vehicle’s value must be a minimum of $6,000 for a BOA auto refinance loan. Bank of America will not refinance the following types of vehicles:
- Recreational vehicles, boats, motorcycles, and aircraft
- Delivery or conversion style
- Lemon law or gray market
- Salvaged or branded-title
- Business or commercial use
Bank of America does not have a minimum income or credit score requirement; however, applicants with good to excellent credit scores are more likely to receive approval. Those with poor credit might be denied an auto refinance.
Bank of America Auto Refinance Application Process
Bank of America features a two-step process for an auto refinance application. You can complete the application online or via telephone with a BOA team member. You will need to provide the following information in your application:
- Phone number
- Email address
- Social Security number
- U.S. citizenship status
- Employment information
- Vehicle information, including mileage and VIN
Once a credit check is completed and you’re approved for a Bank of America auto refinance loan, you will be asked to provide any requested documentation, including a 10-day payoff letter from your current lender and vehicle registration information. Your interest rate and approval will be locked in for 30 calendar days, allowing you time to submit any required documentation and sign your new loan.
Bank of America Auto Refinance Reviews
MarketWatch gives Bank of America auto refinance 8.4 out of 10 stars based on its streamlined application process and customer services. BOA receives a 9.3 for reputation, 8.1 for rates, 8.5 for availability, and 6.2 for customer experience.
The pros of a BOA auto refinance loan include competitive rates, an easy online loan application process, and transparent APR by phone and online. BOA is also an established financial institution with a strong customer service reputation. Cons include the minimum loan amount requirement, needing to have fewer than 125,000 miles on your vehicle, and a minimum vehicle value of $6,000.
When considering an auto refinance, take the time to research your options for terms and APR. You’ll also want to do the math to determine whether an auto refinance is financially sound. A Bank of America auto refinance can save money by lowering your monthly payment or decreasing your interest rate.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.