Bank of America Refinance Mortgage
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Bank of America appears to be a good choice to refinance your home with. As you can see on our lender profile page of Bank of America Profile, the positives are that they have convenient locations, a variety of loan products to choose from and competitive rates. However, you may want to consider that they tend to have high fees, and are reported by many Bills.com users as having a lengthy loan process.
Shop Around for the Best Refinance Loan
When considering to refinance your home you need to consider the costs of doing the loan to determine whether it makes sense to do so. It is always a good idea to shop around and compare lenders to ensure you are getting the best deal. Bills.com makes it easy for you to find the best deal by visiting the Bills.com Refinance Savings Center, where you can get free quotes from up to four different lenders.
If you are looking into a mortgage or specifically a Bank of America refinance to lock in a low or fixed-rate mortgage, consider the following:
Adjustable Rate Mortgages
Do you have an adjustable rate mortgage (ARM)? As interest rates increase, ARM loan payments do too. Homeowners concerned about payments, and whose interest rate is higher than current fixed mortgage interest rates, should consider a refi mortgage. Many economists forecast basically stable interest rates for the short-term future but with the amount of uncertainty in financial markets, there is no telling. You can begin the process with a mortgage lender and have him or her watch rates for you to establish a good time to lock your loan.
Is Refinancing Affordable?
Refinancing involves expenses that can total around 2 percent of the total loan amount. Typically, financial advisors suggest a refi mortgage is worthwhile if the savings on payments will pay for the refinancing costs within two years. Homeowners can calculate their own "break-even" date by dividing the up-front cost (the figure on the Good Faith Estimate form) by the anticipated monthly savings. The answer is the number of months it will take to pay off the refinance — and sooner is better.
Have you grown roots? Homeowners who plan to stay in their home for a long period of time might find that a refi mortgage makes sense. If you have a long term left on your mortgage payments, and your rate is higher than market rates — or you have an ARM or balloon-payment loan and want the security of a fixed rate — you'll likely meet the "break-even" criteria outlined above. If you are confident that you are going to move from your home in 4 or 5 years, you should consider a 5-year ARM, as the interest rates will be lower.
Please use th eBills.com Mortgage Affordability Calculator and the Mortgage Payment Calculator, to help you determine how much you can afford to pay and what your new mortgage payment will be.
Rates Only Part of the Equation
All of these and many others make up the list of reasons homeowners may choose to refinance their homes. Current interest rates are only part of the equation. Establish your goals, learn about your options, and make the decision that's best for you and your timetable. Before you decide to refinance with Bank of America take these factors into consideration.
Be sure to read our Bank of America Review and Profile on Bills.com.