bank of america auto refinance interest rates

Auto Refinance Rates Are the Lowest in Years: Starting at 2.49% Lower your monthly payment; Reduce your loan's interest rate; Change your loan's terms. Ally will refinance the loan on vehicles up to 10 years old. An Ally auto loan is worth considering if the interest rate and loan term. It feels good to get a lower auto loan rate. Refinancing could lower your monthly payment or interest you pay. Apply now.

Bank of america auto refinance interest rates -

Auto Loans

1Rate valid for 30 days from the date of original application submission.

2Bank of America works with thousands of automobile dealerships across the country to assist our customers with the financing of their new and used vehicles. Bank of America is not affiliated with these dealerships and does not require any particular dealership for your vehicle buying experience. Consequently, Bank of America makes no warranties and representations and is not otherwise responsible for any aspect related to the purchase of your vehicle and associated products and services from these authorized dealerships.

3Auto loan preferred interest rate discount of 0.25% to 0.50% is based on reward tier and valid only for enrolled Preferred Rewards members or Preferred Rewards for Wealth Management clients at the time of auto loan application who obtain a Bank of America auto purchase or refinance loan. The maximum preferred interest rate discount on a Bank of America auto loan is 0.50%. This preferred interest rate discount is not reflected in our published rates on our website but will be reflected in the interest rate quoted upon loan approval. Discounts are only available on auto loan applications submitted by you to Bank of America and not applications submitted through dealerships. Benefit is non-transferable. Subject to credit approval. Standard underwriting guidelines and credit policies apply.

Banking, automobile loans, mortgage and home equity products offered by Bank of America, N.A., and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation. Home Icon for Equal Housing Lender Equal Housing Lender. ©20XX Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.

Источник: https://www.ml.com/solutions/auto-loans.html

When To Refinance Your Car: A Decision-Making Guide

First, it’s important to evaluate your current financial needs and determine whether anything has changed that could get you a lower interest rate, shorter loan term or a lower monthly payment this time around.

Let’s take a look at some reasons why you should consider an auto loan refinance, and determine if it’s the right time for you to refinance.

Lower Interest Rate

The most compelling reason for an auto refinance is if you’re able to snag a better interest rate. When you lower your interest rate, you decrease the amount of money you’ll pay in interest over the life of the loan, saving you money in the long term. You might be able to get a better interest rate than your original loan for a few reasons.

  1. Interest rates have gone down since you first got your existing loan. Interest rates are always fluctuating depending on the market. If rates are currently lower than they were when you initially applied for your current auto loan, you could save enough money on interest over the life of the loan to make it worthwhile.
  2. Your credit score has improved significantly since you got your loan. Lenders look at your credit score to understand how credit-worthy you are, which is a big factor in your interest rate. If you’ve improved your bad credit by getting it into the “good” or even “excellent” range, you should consider doing some research to find out which interest rates are now available to you on a new loan.
  3. You know more about auto lenders now than you did when you applied for your current loan. If you financed your purchase through your dealership, it’s possible that you didn’t get as good of an interest rate as you could have. If you went with the first bank that offered you an auto loan or got dealer-arranged financing, you might want to learn how to compare APR with other auto lenders or a credit union.

Haven’t checked your credit in a while? Create a free account with Rocket Homes® to view your TransUnion® Credit Report and VantageScore® 3.0 credit score.

Shorter Loan Term

You can also refinance to adjust into a shorter term so you pay off your car loan faster, and pay less in interest over the life of the loan. Refinancing into a shorter term can make a lot of sense if the following ring true:

  1. Your income has increased significantly since you first got the loan. You may now have the bandwidth to pay off debt as quickly as possible and with as little interest as possible.  Just be sure to calculate how much your monthly payment would increase, and double-check that your budget can handle it.
  2. Your current loan has a prepayment penalty stipulation. Nobody wants to be penalized for deciding to make an extra car payment every once in a while. Now you know to read the fine print in your car refinance.

If your original loan allows for prepayments, a refinance may only make sense if you can secure a lower interest rate. On the other hand, if your current loan does include a prepayment penalty, it might not make sense to refinance unless the money you save in interest is greater than the prepayment penalty.

Lower Monthly Payment

You also have the option to refinance into a longer term for a lower monthly payment, but this generally isn’t ideal, given you’ll pay more in interest. However, this can be a useful measure to avert disaster if you’re at risk of defaulting on your loan. If you’ve suddenly hit hard times and are having trouble with large monthly car payments, extending the loan to lower your monthly cost may be your best option.

The first thing you should do if you run into this predicament, though, is to contact your current lender, and see if there are any options aside from an auto refinance to prevent you from defaulting on your loan. They may be more amenable to helping you out than you think.

Источник: https://www.rockethq.com/learn/personal-finances/when-to-refinance-car-loan

Bank of America Auto Refinance Review


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The following companies are our partners in Auto Refinance: LendingTree, myAutoloans, AUTOPAY, First Choice, MaxCarLoan, 1800FreshStart, RATEGENIUS, LightStream, Auto Credit Express, RefiJet, Auto Approve, Car.Loan.com, Auto Refinance Analyzer, PenFed, FiWize, and Gravity Lending.

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Founded in 1874 and based in North Carolina, Bank of America is a leading provider of financial products to individual consumers, businesses, and large corporations. Part of the company's services include providing auto loan programs for new and used cars. Lease buyout and auto refinancing options are also available. Auto loans from Bank of America are only offered for private use and for vehicles purchased from franchise dealerships.


Auto Loans & Refinancing


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Bank of America Reputation & Reviews



Источник: https://www.consumersadvocate.org/auto-refinance/c/bank-of-america-auto-refinance-review

How car loans work

A lower monthly payment on your car loan doesn’t always mean you’re saving money. Here’s how car loans work.

Purchasing a car typically means taking out a car loan. If you’re in the market for a new vehicle, you’ve probably spent a lot of time researching car options, but do you have a good understanding of how car loans work? When you take out a car loan from a financial institution, you receive your money in a lump sum, then pay it back (plus interest) over time. How much you borrow, how much time you take to pay it back and your interest rate all affect the size of your monthly payment. Here are the 3 major factors that affect both your monthly payment and the total amount you’ll pay on your loan:

  1. The loan amount. It can be significantly less than the value of the car, depending on whether you have a trade-in vehicle and/or making a down payment.
  2. The annual percentage rate. Usually referred to as the APR, this is the effective interest rate you pay on your loan.
  3. The loan term. This is the amount of time you have to pay back the loan, typically 36–72 months.

How do these 3 factors affect your monthly payment?

A lower monthly payment always sounds good, but it’s important to look at the bigger financial picture: That lower payment could also mean you’re paying more for your car over the life of the loan. Let's see how adjusting each of the 3 factors can affect your monthly payment:

  • A lower loan amount. Let's say you’re considering a $25,000 car loan, but you make a $2,000 down payment or negotiate the price of the car down by $2,000. Your loan amount becomes $23,000, which saves you $44.27 per month (assuming a 3.00% APR and a 4-year term).
  • A lower APR. Consider that same $25,000 car loan and let’s assume a 4-year term. One financial institution offers a 3.00% APR and another offers a 2.00% APR. Taking the lower APR will save you $10.98 per month.
  • A longer loan term. Extending a $25,000 loan from 4 years to 5 years (assuming a 3.00% APR) lowers your monthly payment by $104.14, but, you’ll end up paying $391.85 more in interest charges over the life of the loan.

Use the Bank of America auto loan calculator to adjust the numbers and see how differences in loan amount, APR and loan term can affect your monthly payment.

How a lower monthly payment can cost you more

One of the most important things to understand about how auto loans work is the relationship between the loan term and the interest you pay. A longer loan term can dramatically lower your monthly payment, but it also means you pay more in interest.

Consider a $25,000 car loan at a 3.00% APR and a 48-month term. Over 4 years of payments, you’ll pay $1,561 in total interest on the loan. If you extend that same loan to a 60-month term (or 5 years), you’ll lower your monthly payment by $104—but you’ll increase the total interest you'll pay from $1,561 to $1,953.

Weigh all the factors before deciding

There isn’t any one-size-fits-all way to determine the best car loan. That’s why you need to take the time to understand how auto loans work and make the right decision for your specific financial situation.

Some people will benefit most by taking a longer term to reduce monthly payments and using the difference to pay down higher-interest debt. Others will prefer to make a higher monthly payment and pay off the loan sooner.

And if you have an existing car loan, you may be able to save by refinancing. Try our refinancing calculator to find out if you can lower your monthly payment by refinancing.

Ready to get started? Compare today's auto loan rates from Bank of America.

Источник: https://www.bankofamerica.com/auto-loans/how-car-loans-work/

The Rules of Car Loan Refinancing

Access to a car is pretty much a necessity and a freedom that most Americans wouldn’t want to do without—even if car loan payments take a big bite out of their budget. In a 2018 survey conducted by the National Endowment for Financial Education, 15 percent of U.S. adults said they worried about their car loan debt. Whether or not you agree that owning your car is a financial burden, bringing monthly costs down is a good goal to have.

So the big question: When is it a good time to refinance your car loan? How about when you need monthly payments to be more manageable. That’s a good answer. But there are a few other things to consider. But first you should get a good understanding of how refinancing a car works so the route you choose meets your specific goals.

How does refinancing a car work?

Refinancing your car is a lot like refinancing your house; you’re getting a new car loan to replace the one you have. Here are the factors to consider to do that successfully:

  • Make sure your credit is strong. Get your credit report, which is free once a year, and check for mistakes that may lower your credit score. If there are any, get them fixed. Look for items you can pay down or off, especially anything in collections. Check your credit score, which is what most lenders use to determine how likely you are to repay your debts. It’s based on the information on your credit report like payment history, credit history length, debt levels, types of credit history. You can get your credit score free from Discover once a month.
  • Estimate your car’s loan-to-value (LTV) ratio. Unlike homes that can appreciate in value, cars depreciate in value over time. But like a house, you’ll need equity in your car to refinance. To start, you’ll need to determine your auto’s value and whether you’re “upside down” in your loan—meaning what you owe is more than the car’s actual worth. You can research your car’s current value on sites like Kelly Blue Book or NADA Blue Book before beginning the refinancing process.
  • Shop around for the best loans. Finding the best loan is essential so you get the interest rates and repayment terms that work for you. You can do this easily online by using your favorite search engine to compare offers. By not doing your research, you could overpay for your loan. Look for the shortest loan term at the highest monthly payment you can swing. Remember, like home refinancing, your refinanced auto loan restarts the clock on your loan. Read the fine print on every offer to make sure it’s right for you.
  • Get your paperwork together. Besides proving your identity, lenders want to know you can pay your new auto loan back. So know what documents lenders want for the car loan refinancing process and set them aside. To be sure you have everything you need, contact lenders you’re considering and ask them what paperwork they require.

When is it a good time to refinance your car loan?

It’s most ideal to refinance your car loan when one of these three situations occur:

1. When your credit score has improved: Improvement in your credit score since you purchased your vehicle may mean it’s time to refinance. The higher your credit score, generally, the lower your interest rate for your auto loan and the better terms you’ll get for your car refinancing.

You could get a lower interest rate and have more of your monthly payment going to principal and not interest if you do. Over the life of your loan, refinancing to a lower interest rate may save you hundreds or thousands of dollars in payments.

Use a car refinance calculator to determine how much you could save over your car loan’s new term if you refinance.

2. When you need to reduce your monthly payments: If the amount of your monthly auto payment feels burdensome, you might reduce it by refinancing. When you refinance, you may be able to extend your repayment term, which may lead to lower monthly payments.

That could mean more income to put toward other monthly expenses. Run your numbers with a car refinance calculator to see how much monthly savings you’ll see.

Even if those numbers look good, make sure you’re not refinancing into a loan with a higher interest rate or less favorable repayment terms and conditions. Research the process and true costs of refinancing carefully.

When you think you’ve found the right loan, ask clarifying questions of your lender about how refinancing a car works until you’re sure you understand your new loan before accepting.

3. When interest rates drop: If you finance your vehicle through your dealer, you may not have received the best interest rate. Start looking for better deals, identify one and refinance your car loan—especially if you see interest rates dropping. The best place to look may be a financial institution where you already have a relationship. If they don’t offer auto refinancing at all or at lower rates than what you already have, your next best bet may be your local credit union. Credit unions usually offer lower cost loans even if you have a low credit score. If you’re not a member of a credit union, you would need to join to get the best rates. But the cost of membership is usually low and the process worthwhile if you can get a good deal by becoming a member.

Can you refinance your car too soon—or too late?

Many people think it’s necessary to wait a set number of weeks or months to consider refinancing. Others wait too long to refinance their cars for it to make financial sense. Here’s what to know about refinancing timing.

  • You can refinance as soon as you buy your car. If your credit score is high enough and your financial picture strong enough to get better than your dealer-arranged financing, you can pursue refinancing. In some states, you need tag and title in place before you can start the process. But, in most cases, you don’t have to wait beyond that. It’s important you make payments until you get refinancing in place, however. Don’t assume starting the process and getting a firm offer of refinancing means it’s okay to delay payments. You may decide you don’t like the new loan terms at the last moment or you want to shop around more. You don’t want to jeopardize your credit or put yourself at risk of repossession by not making current payments on time.
  • Don’t wait too long to pursue refinancing. There are typically only two times it’s too late to refinance your car. The first is when you’re near the end of your loan term. If you have paid on your car for three years, do you really want to start a new loan term of five to seven years when there are only two years left on your current car loan? The only exception is if you’re refinancing a vehicle you leased because the lease term is ending, and you want to keep the car. Be certain you won’t end up paying more for the vehicle than it’s worth by extending loan repayment terms for those additional years. If you really must lower your car payment late in your loan term for financial reasons, it’s best to trade your current vehicle in for a less expensive one. The other time it’s too late to refinance your car loan is when you’ve had the car for so long it’s lost significant value and you’ll be upside down in your new car loan and your new loan is higher than the value of your car. That’s what you don’t want.
Источник: https://www.discover.com/home-loans/articles/the-rules-of-car-loan-refinancing/

How to save thousands on your Bank of America auto loan

Home / FAQs / How to save thousands on your Bank of America auto loan

Nicholas Hinrichsen - Published: November 15, 2021

You can lower your monthly payments on your Bank of America auto loan and save $600 every year / $50 every month through refinancing. You are a great candidate for refinancing if (a) you got your current loan at the dealership and/or (b) made all of your loan payments on time.
Instead of making your monthly payment to Bank of America why not refinance now and save thousands in minutes.

Table of contents


Background on Bank of America
  • Bank of America reviews
  • How to make your payment?
  • Does Bank of America report to the credit bureaus?

Before refinancing your Bank of America auto loan
  • Things to consider before refinancing
  • Common mistakes people make when refinancing

How to refinance your Bank of America auto loan
  • Step by step guide to refinance
  • Experts’ take on how to refinance
  • How much does it cost to refinance?
  • How soon can you refinance?
  • Will refinancing hurt your credit?
  • What happens if I pay extra?
  • Expected Savings from refinancing?
  • What are current refinance rates?
  • Can you refinance with the same lender?
  • Best bank for refinancing your Bank of America loan?

Things not to do when refinancing
  • Reasons you should not refinance
  • Can I skip a car payment?
  • Does Bank of America have a grace period?
  • How long does Bank of America take to repossess my car?

Refinance your Bank of America loan now

Background on Bank of America


Before going into more detail, here a little background about Bank of America: Bank of America's history stretches back to the Bank of Italy, which was founded by Amadeo Pietro Giannini in 1904 in San Francisco. The bank of Italy was the first bank to provide commercial loans to rebuild San Francisco after the big earthquake..

By 1945, Bank of America has grown to be the biggest commercial retail bank in the world. Today, BofA also serves 46 million commercial customers, at 4,600 banking centers and operates 15,900 ATMs across all states.

Bank of America targets the segment of American car shoppers with good (i.e. prime) credit and we observed an average auto loan interest rate of 8% (within a range of +/- 4%), while rates vary a lot by credit score. Our Bank of America auto loan calculator can pre-qualify you hassle-free through a simple credit application and help you get a sense for how much you can expect to save from a Bank of America auto refinance and the best rates.

Bank of America reviews


If you currently have a loan with Bank of America, you most likely got the loan at the dealership during the car purchase. You probably used your used vehicle as a trade-in to lower your down payment. The dealer found you your loan and you can make your payments by clicking on Online Banking at https://www.bankofamerica.com.

79% of all Americans with auto loans get their auto loan at the dealership. People shop for new cars, they don't shop for new loans. As a result, auto dealers have a leg up when it comes to giving car shoppers loans. In fact, the same is true for auto insurance and when you inquire about a warranty.

The challenge is this:

  1. the number 1 goal of a car dealer is to sell a car
  2. the number 2 goal of a car dealer is to sell the car at the highest possible margin

Considering the interests of the car dealer and how most car shoppers get their loans, no wonder Americans are overpaying on their interest rates, right?

As mentioned above, Bank of America is an auto loan and financial services company that specializes on the segment of Americans with good (i.e. prime) credit. We looked at reviews for Bank of America and found the following:

  • BBB: 1 out of 5 stars and 5,510 complaints
  • Wallethub: 3.1 out of 5 stars from 46 reviews
  • Glassdoor: 3.7 out of 5 stars from 22,249 reviews

Ever wondered if Bank of America treats everyone like you? Sadly, they do. Other loans you might have also qualified for could have been with one of the following auto loan companies:


If you bought your car at a Franchise Dealership, you may have qualified for a loan with one of the Captive Finance companies (i.e. the auto loan companies that are owned by the respective car brand), e.g.:


After you've made your first 6 / 12 / 18 payments, your chance to refinance your loan and lower your monthly payments has come. The challenge with refinancing is that most auto loan companies require you to visit their branch before they can give you any indication of how much money you will be saving. Fortunately, we can help with that.

How to make your Bank of America payments?


If you currently have a loan with Bank of America paying online is easy. Simply go to https://www.bankofamerica.com and login on the left at Online Banking. You can choose between:

  • Making a one time payment.
  • Enrolling in Autopay from your checking account.

Please note that many banks and financial institutions offer a rate discount for enrolling in autopay (to reduce your interest expense and lower your monthly payment). Bank of America would have highlighted this option to you to get you into a lower interest rate when you got pre-qualified during your application process for your auto financing.

If you can’t pay online, you’ve also got the option to:

Pay your bill over the phone: Call 1-800-215-6195

Pay your bill through the mail: Send a check to Bank of America

Bank of America, N.A.
PO Box 15220
Wilmington, DE 19886

Does Bank of America report to the credit bureaus?


When you first obtained your auto loan, Bank of America reported your new loan to the credit bureaus. Your Bank of America loan shows up as a so called trade-line on your credit report. Through a soft or hard credit inquiry, we can see:

  • When you got your Bank of America loan
  • What your initial balance was
  • How high your monthly payment is
  • Whether you've made your payments in time and full
  • How high your outstanding balance is
  • How many payments are remaining

If you miss a payment, Bank of America will very likely report the incident to the credit bureaus. Just like any other auto finance company, Bank of America will also report to the credit bureaus when you paid off your loan or refinanced it. In both of those cases, your loan will show up as paid off.

Before refinancing your Bank of America auto loan


Before refinacing your Bank of America auto loan we recommend first taking a look at how much you actually owe. To get a clear picture of your current loan, we need to pull up your Bank of America loan payoff statement to obtain your loan payoff amount and details. The loan payoff statement is not your outstanding balance. Instead, the loan payoff statement summarizes the following data points:

  • your payoff amount (usually your loan amount balance plus a few small fees)
  • the due date until your payoff is valid to avoid late fees (usually 10 days from when you requested it)
  • the per-diem (how much of daily interest your loan accumulates)
  • your account number (the new lender needs that to payoff your loan)
  • the payoff address (the new lender needs to know where to mail the check to)

With your accurate payoff information in mind, you're well equipped to make an educated decision on whether or not to refinance your loan. High monthly savings doesn't necessarily mean refinancing is worth it quite yet. We'll therefore look into a few nuances of refinancing first.

Things to consider before refinancing


Is it smart to refinance your Bank of America loan? Absolutely yes, you will save thousands of dollars over the life of your loan and free up up to $150 per month. With a good partner who can navigate the process, you will be done in minutes.

That said, we've seen a number of 'traps' when helping Americans refinace their auto loans. Just to be clear, there is no such thing as a prepayment penalty. So all the information required to consider a refinance can be found on the official payoff statement.

Once you know the payoff amount, you need to decide whether you want to pay off your loan yourlself or let the new lender take care of that. You have multiple payment options but first you need to locate the payoff statement from Bank of America's customer service reps:

  1. Call the Bank of America customer service phone number at 1-800-215-6195 and ask to be connected to the loan payoff department.
  2. Log into the online banking at Online Banking (https://www.bankofamerica.com, login on the left) and browse to the 'Loan Payoff' tab. You will be able to download a PDF.
  3. Do a three-way phone call with the new lender and a Bank of America customer service rep at 1-800-215-6195, which allows the new lender to ask Bank of America all the questions necessary to pay off your existing loan.

Should you plan to payoff your loan and you are currently in the United States, you can overnight a check to the following address:

Bank of America, N.A.
PO Box 15220
Wilmington, DE 19886

Once you paid off your auto loan, expect to receive the vehicle title along with a lien release letter in the mail. Car loans are usually secured personal loans and in order to be able to sell your vehicle or refinance it, you need the lien release in hand.

We provided those addresses above because we always struggle to find a service provider's contact information. Just be aware, due to COVID-19, waiting times for customer service reps might be longer than usual.

Want us to take care of the refinance for you? We can lower your rate in less than two minutes.

Common mistakes people make when refinancing


We've been helping Americans lower their Bank of America auto loan payments for a long time now. Bank of America - or any other auto lender for what its worth - doesn't want you to refinance their loan. Therefore, you won't find a lot of information about how to refinance your Bank of America on the Internet.

One common mistake we're seeing when helping Bank of America customers lower their car payments is the following:

Many borrowers think that refinancing their Bank of America auto loans means 'restructuring' the loan. With restructuring we mean: get a second chance to make payments after you have missed a few payments or closing the chapter with Bank of America and starting over with a new lender. Logically, that's not what refinancing is.

Refinancing your Bank of America auto loan means quite the opposite: you will be able to lower your payments by decreasing your interest rate and/or stretching the term because you've done a good job and made your payments in time and in full.

If you have not made your payments to Bank of America in time and in full, you're not a good candidate for refinancing. Instead, you should contact Bank of America and get their help on financial planning for the future. Your goal has to be to not miss payments again.

How to refinance your Bank of America auto loan


To lower your monthly payments on your Bank of America (also known as B of A, BofA or Boa) auto loan, you need to find a lender that can extend your used car loan term or who offers lower auto loan rates before the loan is paid in full. The best way to do so is through an online application that returns your annual percentage rate (APR) immediately. Usually, lenders offer you a lower rate than your current auto loan for one of two reasons:

  1. When you bought your car, the participating dealer marked up your rate. That's common for auto loan originations and to make more money.
  2. You improved your credit over time and now qualify for a lower car payment and interest rate.

Both of these observations are common sense and the reason for why you can save a lot of money, especially if you drive your car for personal use. You improved your credit with the credit bureaus from prime credit (i.e. between 680 and 720 on your credit report) to super prime credit (i.e. above 720), you're not facing any financial difficulties and therefore, your new lender will be likely one of the following ones:


You successfully got out of the prime credit segment (a FICO between 680 - 720 on your credit history) and moved into the super prime credit segment (FICO above 720). Credit Unions love super-prime members. These lenders have a community charter, are FDIC approved and are non-profits providing a great customer experience. Therefore, the rates are as low as they get.

In the following, we will walk you through the exact steps to pay off your Bank of America loan. If you want to skip the details and refinance now through a simple loan application, get an offer with a few clicks and with no impact on your credit.

Step by step guide to refinance


Follow these 7 steps to refinance your Bank of America auto loan:

  1. Figure out your payoff amount
  2. Check if you have positive / negative equity
  3. Compare rates offered by lenders or contact a refinance broker
  4. Calculate your new rate and monthly payments
  5. Sign all the paperwork
  6. Payoff your existing loan
  7. Set up auto-pay with your new lender


Experts’ take on how to refinance


Experts in the refinancing space such as CreditKarma, NerdWallet and Bankrate are strong proponents of auto loan refinancing. That is true for Bank of America customers like you as well as any other auto loan company. NerdWallet even released a list of the 10 Best Auto Loan Refinancing Lenders, followed by Money.com, LendingTree, Investopedia and The Balance.

Personal finance is an important topic. We have seen studies that show how happiness and mental well-being directly correlate with stable and reliable finances. Therefore, we strongly recommend doing a lot of research and then refinancing your Bank of America auto loan.

The experts above have a good general understanding of personal finance. Given our backgrounds (MiT, McKinsey, Bain, Merrill Lynch, Stanford Graduate School of Business, Carvana etc) we are the absolute, unquestioned and unchallenged authority on auto loan refinancing in particular and have published a thorough thought leadership piece about it.

How much does it cost to refinance?


The cost to refinance your Bank of America are somewhere between $15 and $449. In theory, refinancing doesn't cost anything. You don't have early repayment fees on your Bank of America auto loan and the only charge that applies is the fee for the Department of Motor Vehicles (DMV) to change the lienholder on your vehicle title.

However, depending on who you work with to refinance your Bank of America auto loan, you might be incurring some (hidden) fees of up to $449. Take a look at our thorough refinance lender comparison to get a good overview of the cost related to refinancing your Bank of America loan by refinancing company.

How soon can you refinance?


You're eager to refinance your Bank of America loan? Great, you should absolutely work towards lowering your Bank of America payments through refinancing.

Car dealerships make most of their money on finance and insurance products. Therefore, there's a good chance that you are overpaying and can save money through refinancing - already the day you drive off the lot! That said, you will save the biggest amount of money from refinancing after you made 12 to 18 payments. That's when you will notice the effect from improving your credit above and beyond good (i.e. prime) credit.

That said, we recommend checking regularly: you can get a free refinance offer with no impact on your credit in three simple steps.

Will refinancing hurt your credit?


Refinancing will not hurt your credit! If you have the app CreditKarma installed on your phone, take a peek at what factors determine your credit. You will find the following:

  • Number of Hard Inquiries (less is better)
  • Age of Credit history (more is better)
  • Credit Card Utilization (less is better)
  • Total Accounts (more is better)
  • Derogatory Marks (less is better)
  • Payment History (more is better)

None of these factors is impacted negatively if you obtain a refinancing offer for your Bank of America loan. Lenders don't need to do a hard credit inquiry to make you a firm refinance offer. Neither do they charge an application fee. From a soft credit pull, we can see your whole credit file and estimate your rate.

Should you decide to accept the refinance offer, the new lender will have to perform a hard inquiry in order to add your new loan to your credit file. The hard inquiry, however, only happens after you have been approved.

We argue that the positive impact of refinancing your Bank of America loan outweigh the negative impact of the hard credit inquiry: after you refinance your Bank of America loan, you will have a lower rate and lower monthly payments. As a result, the likelihood that you will be able to establish a perfect payment history increases which will drive your score up quickly.

What happens if I pay extra?


The answer is simple: your loan term will shorten but your monthly payment will stay the same. A number of our customers hope they can reduce their monthly payments through paying extra but no lender will do that.

To lower your monthly payments, you have to refinance your loan. If you haven't considered refinancing your Bank of America loan yet, you definitely should: not only can you reduce your monthly payments within 2 minutes or less, your total interest expense will go down as well and as a result, you can save $600 every year / $50 every month.

Expected Savings from refinancing?


We performed a study on the top 40 auto loan companies to refinance and found that the average Bank of America loan rate is around 8% (within a range of +/- 4%). If you made your payments for 6 / 12 / 18 consecutive months, you're guaranteed to be able to save money on your Bank of America loan.

Your new interest rate should be on the order of 4% or below. That means you will save $400 every year / $33 every month if your remaining loan balance is around $10,000 and you refinance. Usually, we see higher loan balances when refinancing our customers, e.g. around $15,000. If your loan balance is around $15,000 you will save $600 every year / $50 every month when you lower your rate by 4%.

For a guaranteed rate in less than 2 minutes, open WithClutch.com, enter your phone number, select your goal (e.g. 'Lower my monthly payment') and click on 'Apply Now'. Our process will not hurt your credit and you'll receive a firm and guaranteed rate with not more than 5 clicks. Should you have any further questions, check out our FAQs.

What are current refinance rates?


We can help you get the following Bank of America refinance rates:

Credit New car Used car
760+ 2.69% 3.49%
700-760 3.00% 4.25%
650-700 5.50% 6.50%
600-650 9.75% 10.75%
550-600 15.50% 17.50%
Below 550 22.00% 22.00%

As mentioned above, Bank of America car loan rates vary a lot by credit score, i.e. lowest rate for excellent credit to highest rate for challenged credit. Yet, the rates are usually the same no matter where you live in the United States - be it Hawaii or Maine, Alaska or Florida. We therefore recommend taking a look at your Bank of America refinance offer for your exact and personalized refinance terms.

Can you refinance your Bank of America loan with the same lender?


The answer is short and sweat: no, you cannot refinance a Bank of America loan with the same lender. Bank of America does one of two things with your loan:

  • Keep it and generate profit over the course of the loan and while you are paying your interest.
  • Sell your loan to an institutional investor or the public through a securitization to realize a lump sum profit immediately.

In both of those cases, the institution holding your loan is expecting your monthly payments. When you refinance, however, you change the expected cash flow to Bank of America, which impacts Bank of America's bottom line. Bank of America would not allow that.

Hence, if anyone challanges you 'Does Bank of America refinance?' or 'Can you refinance through Bank of America?' the answer is simple: Bank of America won't let you refinance your car loan if you currently have your loan with Bank of America. Instead, you need to find a new lender offering a lower rate.

Fortunately, we recently studied the best car loan refinance companies and wrote a thorough review. In a nutshell, only WithClutch offers a fully digital pre-qualification experience, even for borrowers with minimum monthly income and without charging unreasonable fees. We do our best to give our clients the best auto refinance loans. Our partner lenders can offer the lowest rates and can help with lease buyouts as well as refinancing.

Best bank for refinancing your Bank of America loan?


In our study about the best car loan refinance companies, we explained that we need to distinguish between:

  1. Lenders (i.e. banks and Credit Unions who ultimately replace your Bank of America loan with a new one with a lower rate)
  2. Refinance Brokers (i.e. companies that create a marketplace between lenders and you as the customer with a Bank of America loan)
  3. Affiliate Websites (i.e. websites that rank high in Google's search algorithm for e.g. 'how to refinance my Bank of America loan' aiming to get you to submit your contact details)

Best Auto Loan Refinance Companies of 2021

  • Best for Great Credit: Credit Unions
  • Best for Checking Rates Without Impacting Your Credit: Capital One.
  • Best Trusted Name: Bank of America, Chase or WellsFargo.
  • Best for The Most Options: WithClutch.
  • Best for Members of the Military: USAA or Navy Federal CU.
  • Best for Peer-to-Peer Loans: LendingClub although not recommendable.
  • Credit Union with lowest rates: Digital Credit Union and PenFed.

Feel free to submit your details on our digital and 100% online refinance platform for some free advice on which company would be the best fit for you. You'll get a reliable answer with three clicks and in less than 2 minutes.

Things not to do when refinancing


Refinancing your Bank of America auto loan may feel intimidating and overwhelming. That's totally understandable, you don't refinance your Bank of America loan every day and therefore want to avoid a few pitfalls:

Reasons you should not refinance


You should not refinance your Bank of America auto loan if you end up with a higher overall interest charge. That means, you don't want to refinance your loan if you end up in a worse financial product, with a higher interest rate. Let's take a look at the following example:

if you're currently paying 8% and $450 monthly, you don't want to accept a loan at 8% even if the monthly payment might be $400 only because your lender stretched the loan over a longer period of time. It is definitely possible but we highly recommend against it.

We've seen thousands of success stories of clients refinancing their Bank of America auto loans. Some of our clients wanted to reduce their monthly Bank of America payment while keeping the loan term constant. Other clients wanted to reduce the monthly payments by even more and therefore stretched the loan term to 60, 72 and some even 84 months.

And other clients had positive equity in their car - i.e. the remaining Bank of America loan balance was lower than the value of their car - and therefore decided for themselves that the best auto loan from all of our loan offers would be the one with cash-out.

Still, one question a lot of our customers ask us is this: 'I haven't been great about making my payments so my credit score hasn't improved a lot quite yet. However, I really want to lower my monthly payments. Should I refinance, accept a higher rate and stretch the loan over a longer period of time?'

We don't encourage such a refinance. It's a bad financial decision and you're locking yourself into making a lot higher payments over a long period of time. Don't be penny-wise and pound-foolish!

Can I skip a car payment?


You're short on cash and are wondering whether you can skip a car payment with Bank of America? The answer is yes, you can defer one or more payments on your existing auto loan. You have to talk to Bank of America about the deferral first though. You can't just not pay or you risk collection calls and ultimately a repossession.

Ideally, you give Bank of America a call at 1-800-215-6195 and describe your situation. Bank of America's goal is for you to make your payments throughout the whole term of the loan. Finance charges will continue to accrue on the unpaid loan balance, which means you will end up paying more on your loan after all. But for as long as you communicate well with Bank of America, they will defer one or more payments out of courtesy and to help you with your repayment.

All that said, you can lower your Bank of America payments through refinancing if you've made all your latest payments on time. In three simple steps, you can find out how low your payments could be without having to skip a payment or two.

Does Bank of America have a grace period?


The Bank of America late payment policy provides a grace period of 7 to 15 days. Grace periods vary from lender to lender and due to the coronavirus pandemic, banks have become a lot more lenient with their borrowers.

Late fees vary drastically by loan, the minimum late fee we've encountered was 5% of the monthly payment amount. However, we strongly advise not to take advantage of Bank of America's grace period unless you have an emergency. You'd be putting your credit at risk, which can have a long-term, negative impact on your personal finances.

Instead, we recommend exploring if refinancing can help you reduce your monthly burden and potentially even provide unexpected cost savings. Provide your phone number and follow our three simple steps to get a firm offer, 100% online and with no hit on your credit.

How long does Bank of America take to repossess my car?


Repossession law varies slightly from state to state and range from 3 to 5 months after you stopped making payments on your Bank of America loan. Each individual retail and installment contract - the contract you signed when you got your car and Bank of America loan - states what constitutes a default.

Some states and contracts even trigger a repossession within 45 days (or a month and a half) of being in default. You are in default when you stopped making your payments and for as long as you haven't paid the Bank of America late fees.

Just catching up with your missed payments making Bank of America whole doesn't automatically mean you're not in default anymore. You really need to pay Bank of America everything you owe including fees to be not considered in default any longer.

Refinance your Bank of America loan now


Haven't explored refinancing yet? Take a look at our exhaustive article about all the auto refinance companies and you will realize, WithClutch.com is the only fully digital platform that lets car owners like you do so from the comfort of their own home. No need to set a foot in a bank or credit union. You can lower your rate or get cash in as little as 20 seconds.

Follow three simple steps to refinance your auto loan, get approved in seconds and save thousands in minutes.
Источник: https://www.withclutch.com/faq/how-to-refinance-my-bank-of-america-auto-loan

We hit the books so you can hit the road.

Whether you're looking to buy a new or used car, or refinancing your auto loan for a better rate, we’re here to make the smart choice easy.

New Car Auto Loan Details

  • Repayment terms up to 96 months
  • Extended warranty purchase available
  • GAP Insurance purchase available

Apply

Used Auto Loan Details

  • Repayment terms up to 84 months
  • Extended warranty purchase available
  • GAP Insurance purchase available

Apply

New and Used Auto Refinances

  • Must refinance for a minimum term of 24 months.
  • New and Used auto rates apply, depending on review of title and original purchase agreement / loan agreement.
  • To qualify as a new Auto refinance, the vehicle must have been purchased as new, and the refinance must be completed within 12 months of the original purchase date.
  • Not eligible for sale or promotional rates
  • Vehicles with commercial plates cannot be refinanced as a Consumer Auto Loan.
  • Vehicles with rebuilt or salvaged titles are not able to be refinanced as a Consumer Auto Loan.

View Disclosures


Источник: https://www.teachersfcu.org/personal-banking/vehicle-loans/auto

: Bank of america auto refinance interest rates

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Bank of america auto refinance interest rates
bank of america auto refinance interest rates

Best Auto Loan Refinance Banks

Final Verdict

There are lots of options when it comes to auto loan refinance banks and lenders. Some lenders stand out for their easy online application process, while others excel at providing refinancing options even for borrowers with poor credit. Overall, our top choice for an auto loan refinance lender is LightStream.

For qualified borrowers with good credit and steady income, LightStream offers some of the most competitive auto loan refinance rates. They feature a simple online application process, no restrictions on age or mileage, and funding as soon as the same business day.

Compare The Best Auto Loan Refinance Banks

CompanyStarting Interest RateMinimum Credit ScoreLoan Terms (range)Maximum Loan Amount
LightStreamBest for Great Credit2.49%66024 to 84 months$100,000
Capital OneBest for Checking Rates VariesNone Varies $50,000 
Bank of AmericaBest Trusted Name 3.39%None 48 to 72 months Not available
AutoPayBest for the Most Options 1.99% None Varies Not available 
USAABest for Members of the Military Varies None Varies Not available 
LendingClubBest for Peer-to-Peer Loans VariesNone 24 to 84 months $55,000
Consumers Credit UnionBest Credit Union 2.24%None12 to 78 months Not available 

Guide to Choosing an Auto Loan Refinance Bank

When to Consider Refinancing Your Auto Loan

It’s a good idea to think about refinancing your auto loan if your credit score has improved since you first took out the loan. A higher credit score can qualify you for lower rates, saving you money on interest over time. However, you may want to hold off on refinancing a loan if your credit score has gone down.

Compare Auto Loan Refinance Banks 

In order to make your auto loan refinance a success, it’s important to choose a bank that meets your needs. Some things to consider when evaluating lenders include:

  • Rates: The lower the rates, the more you’ll save on interest. Be sure to compare multiple lenders in order to lock in the lowest rates possible.
  • Required credit score: Some lenders have minimum credit score requirements.
  • Vehicle restrictions: While some banks and lenders work with all vehicles, others have certain restrictions when it comes to vehicle type, age, and mileage.
  • Prequalification options: If possible, look for a lender that allows you to prequalify for an auto loan refinance without affecting your credit score.
  • Application process: Look for a lender that offers a simple application process and fast funding.
  • Customer service: You should choose a lender with a history of good customer service and high customer satisfaction.

Apply for Your Auto Loan Refinance

Before you apply for an auto loan refinance, you should make sure that your own finances are in order. You should try to establish a high credit score, low debt to income ratio, and a history of stable income before applying for an auto loan refinance.

In order to apply for an bank of america auto refinance interest rates loan refinance, there are a few documents you’ll need to have on hand. These include personal information like your name, address, and Social Security number, as well as proof of insurance, your current loan and lender information, and your vehicle’s make and model, age, and mileage.

Some lenders may allow you to prequalify and view your loan options before submitting an application. Once you decide on a lender, you can submit your application for an auto refinance loan. In some cases, you could receive funding in as little as one business day.

Frequently Asked the cottages siesta key vacation rentals

How Does an Auto Loan Refinance Work?

An auto loan refinance is when you replace your current auto loan with a new one, intending to receive a lower interest rate. Your new loan will pay off the old loan, and you will sign new paperwork, have new terms and conditions, and a new interest rate.

You typically choose to refinance your auto loan if you’re unhappy with the rate or terms, or your credit score has gone up significantly since your original loan. Usually, refinancing is to save money, but keep an eye out for refinancing fees.

What Are the Requirements to Refinance an Auto Loan?

Different lenders have different requirements to refinance an auto loan, but most require that you:

  • Wait at least 60–90 days after the original loan so the title on your vehicle has been transferred
  • Meet a minimum credit score set by the lender (typically 660 or higher)
  • Show proof of income and identification documents
  • Have a car under a certain number of miles (some lenders require under 125,000 miles and under 10 years old)

How Much Does it Cost to Refinance an Auto Loan?

Just like each auto lender has different criteria for refinancing an auto loan, they also have different refinance fees. Bank of america auto refinance interest rates auto lenders charge processing and origination fees to do the refinance paperwork, and you may have to pay a prepayment penalty from your original lender. However, other lenders don’t charge any fees, so you will want to find this out ahead of time.

Methodology

We chose the 7 best auto loan refinance banks by first reviewing and researching multiple auto loan refinance banks and then selecting the top contenders. We chose the best options based on credit score requirements, company reputation, available options, rates offered, and more.

Источник: https://www.thebalance.com/best-banks-for-refinancing-auto-loans-4178024

We hit the books so you can hit the road.

Whether you're looking to buy a new or used car, or refinancing your auto loan for a better rate, we’re here to make the smart choice easy.

New Car Auto Loan Details

  • Repayment terms up to 96 months
  • Extended warranty purchase available
  • GAP Insurance purchase available

Apply

Used Auto Loan Details

  • Repayment terms up to 84 months
  • Extended warranty purchase available
  • GAP Insurance purchase available

Apply

New and Used Auto Refinances

  • Must refinance for a minimum term of 24 months.
  • New and Used auto rates apply, depending on review of title and original purchase agreement / loan agreement.
  • To qualify as a new Auto refinance, the vehicle must have been purchased as new, and the refinance must be completed within 12 months of the original purchase date.
  • Not eligible for sale or promotional rates
  • Vehicles with commercial plates cannot be refinanced as a Consumer Auto Loan.
  • Vehicles with rebuilt or salvaged titles are not able to be refinanced as a Consumer Auto Loan.

View Disclosures


Источник: https://www.teachersfcu.org/personal-banking/vehicle-loans/auto

How to save thousands on your Bank of America auto loan

Home / FAQs / How to save thousands on your Bank of America auto loan

Nicholas Hinrichsen - Published: November 15, 2021

You can lower your monthly payments on your Bank of America auto loan and save $600 every year / $50 every month through refinancing. You are a great candidate for refinancing if (a) you got your current loan at the dealership and/or (b) made all of your loan payments on time.
Instead of making your monthly payment to Bank of America why not refinance now and save thousands in minutes.

Table of contents


Background on Bank of America
  • Bank of America reviews
  • How to make your payment?
  • Does Bank of America report to the credit bureaus?

Before refinancing your Bank of America auto loan
  • Things to consider before refinancing
  • Common mistakes people make when refinancing

How to refinance your Bank of America auto loan
  • Step by step guide to refinance
  • Experts’ take on how to refinance
  • How much does it cost to refinance?
  • How soon can you refinance?
  • Will refinancing hurt your credit?
  • What happens if I pay extra?
  • Expected Savings from refinancing?
  • What are current refinance rates?
  • Can you refinance with the same lender?
  • Best bank for refinancing your Bank of America loan?

Things not to do when refinancing
  • Reasons you should not refinance
  • Can I skip a car payment?
  • Does Bank of America have a grace period?
  • How long does Bank of America take to repossess my car?

Refinance your Bank of America loan now

Background on Bank of America


Before going into more detail, here a little background about Bank of America: Bank of America's history stretches back to the Bank of Italy, which was founded by Amadeo Pietro Giannini in 1904 in San Francisco. The bank of Italy was the first bank to provide commercial loans to rebuild San Francisco after the big earthquake.

By 1945, Bank of America has grown to be the biggest commercial retail bank in the world. Today, BofA also serves 46 million commercial customers, at 4,600 banking centers and operates 15,900 ATMs across all states.

Bank of America targets the segment of American car shoppers with good (i.e. prime) credit and we observed an average auto loan interest rate of 8% (within a range of +/- 4%), while rates vary a lot by credit score. Our Bank of America auto loan calculator can pre-qualify you hassle-free through a simple credit application and help you get a sense for how much you can expect to save from a Bank of Bank of america auto refinance interest rates auto refinance and the best rates.

Bank of America reviews


If you currently have a loan with Bank of America, you most likely got the loan at the dealership during the car purchase. You probably used your used vehicle as a trade-in to lower your down payment. The dealer found you your loan and you can make your payments by clicking on Online Banking at https://www.bankofamerica.com.

79% of all Americans with auto loans get their auto loan at the dealership. People shop for new cars, they don't shop for new loans. As a result, auto dealers have a leg up when it comes to giving car shoppers loans. In fact, the same is true for auto insurance and when you inquire about a warranty.

The challenge is this:

  1. the number 1 goal of a car dealer is to sell a car
  2. the number 2 goal of a car dealer is to sell the car at the highest possible margin

Considering the interests of the car dealer and how most car shoppers get their loans, no wonder Americans are overpaying on their interest rates, right?

As mentioned above, Bank of America is an auto loan and financial services company that specializes on the segment of Americans with good (i.e. prime) credit. We looked at reviews for Bank of America and found the following:

  • BBB: 1 out of 5 stars and 5,510 complaints
  • Wallethub: 3.1 out of 5 stars from 46 reviews
  • Glassdoor: 3.7 out of 5 stars from 22,249 reviews

Ever wondered if Bank of America treats everyone like you? Sadly, they do. Other loans you might have also qualified for could have been with one of the following auto loan companies:


If you bought your car at a Franchise Dealership, you may have qualified for a loan with one of the Captive Finance companies (i.e. the auto loan companies that are owned by the respective car brand), e.g.:


After you've made your first 6 / 12 / 18 payments, your chance to refinance your loan and lower your monthly payments has come. The challenge with refinancing is that most auto loan companies require you to visit their branch before they can give you any indication of how much money you will be bank of america auto refinance interest rates. Fortunately, we can help with that.

How to make your Bank of America payments?


If you currently have a loan with Bank of America paying online is easy. Simply go to https://www.bankofamerica.com and login on the left at Online Banking. You can choose between:

  • Making a one time payment.
  • Enrolling in Autopay from your checking account.

Please note that many banks and financial institutions offer a rate discount for enrolling in autopay (to reduce your interest expense and lower your monthly payment). Bank of America would have highlighted this option to you to get you into a lower interest rate when you got pre-qualified during your application process for your auto financing.

If you can’t pay online, you’ve also got the option to:

Pay your bill over the phone: Call 1-800-215-6195

Pay your bill through the mail: Send a check to Bank of America

Bank of America, N.A.
PO Box 15220
Wilmington, DE 19886

Does Bank of America report to the credit bureaus?


When you first obtained your auto loan, Bank of America reported your new loan to the credit bureaus. Your Bank of America loan shows up as a so called trade-line on your credit report. Through a soft or hard credit inquiry, we can see:

  • When you got your Bank of America loan
  • What your initial balance was
  • How high your monthly payment is
  • Whether you've made your payments in time and full
  • How high your outstanding balance is
  • How many payments are remaining

If you miss a payment, Bank of America will very likely report the incident to the credit bureaus. Just like any other auto finance company, Bank of America will bank of america auto refinance interest rates report to the credit bureaus when you paid off your loan or refinanced it. In both of those cases, your loan will show up as paid off.

Before refinancing your Bank of America auto loan


Before refinacing your Bank of America auto loan we recommend first taking a look at how much you actually owe. To get a clear picture of your current loan, we need to pull up your Bank of America loan payoff statement to obtain your loan payoff amount and details. The loan payoff statement is not your outstanding balance. Instead, the loan payoff statement summarizes the following data points:

  • your payoff amount (usually your loan amount balance plus a few small fees)
  • the due date until your payoff is valid to avoid late fees (usually 10 days from when you requested it)
  • the per-diem (how much of daily interest your loan accumulates)
  • your account number (the new lender needs that to payoff your loan)
  • the payoff address (the new lender needs to know where to mail the check to)

With your accurate payoff information in mind, you're well equipped to make an educated decision on whether or not to refinance your loan. High monthly savings doesn't necessarily mean refinancing is worth it quite yet. We'll therefore look into a few nuances of refinancing first.

Things to consider before refinancing


Is it smart to refinance your Bank of America loan? Absolutely yes, you will save thousands of dollars over the life of your loan and free up up to $150 per month. With a good partner who can navigate the process, you will be done in minutes.

That said, we've seen a number of 'traps' when helping Americans refinace their auto loans. Just to be clear, there is no such thing as a prepayment penalty. So all the information required to consider a refinance can be found on the official payoff statement.

Once you know the payoff amount, you need to decide whether you want to pay off your loan yourlself or let the new lender take care of that. You have multiple payment options but first you need to locate the payoff statement from Bank of America's customer service reps:

  1. Call the Bank of America customer service phone number at 1-800-215-6195 and ask to be connected to the loan payoff department.
  2. Log into the online banking at Online Banking (https://www.bankofamerica.com, login on the left) and browse to the 'Loan Payoff' tab. You will be able to download a PDF.
  3. Do a three-way phone call with the new lender and a Bank of America customer service rep at 1-800-215-6195, which allows the new lender to ask Bank of America all the questions necessary to pay off your existing loan.

Should you plan to payoff your loan and you are currently in the United States, you can overnight a check to the following address:

Bank of America, N.A.
PO Box 15220
Wilmington, DE 19886

Once you paid off your auto loan, expect to receive the vehicle title along with a lien release letter in the mail. Car loans are usually secured personal loans and in order to be able to sell your vehicle or refinance it, you need the lien release in hand.

We provided those addresses above because we always struggle to find a service provider's contact information. Just be aware, due to COVID-19, waiting times for customer service reps might be longer than usual.

Want us to take care of the refinance for you? We can lower your rate in less than two minutes.

Common mistakes people make when refinancing


We've been helping Americans lower their Bank of America auto loan payments for a long time now. Bank of America - or any other auto lender for what its worth - doesn't want you to refinance their loan. Therefore, you won't find a lot of information about how to refinance your Bank of America on the Internet.

One common mistake we're seeing when helping Bank of America customers lower their car payments is the following:

Many borrowers think that refinancing their Bank of America auto loans means 'restructuring' the loan. With restructuring we mean: get a second chance to make payments after you have missed a few payments or closing the chapter with Bank of America and starting over with a new lender. Logically, that's not what refinancing is.

Refinancing your Bank of America auto loan means quite the opposite: you will be able to lower your payments by decreasing your interest rate and/or stretching the term because you've done a good job and made your payments in time and in full.

If you have not made your payments to Bank of America in time and in full, you're not a good candidate for refinancing. Instead, you should contact Bank of America and get their help on financial planning for the future. Your goal has to be to not miss payments again.

How to refinance your Bank of America auto loan


To lower your monthly payments on your Bank of America (also known as B of A, BofA or Boa) auto loan, you need to find a lender that can extend your used car loan term or who offers lower auto loan rates before the loan is paid in full. The best way to do so is through an online application that returns your annual percentage rate (APR) immediately. Usually, lenders offer you a lower rate than your current auto loan for one of two reasons:

  1. When you bought your car, the participating dealer marked up your rate. That's common for auto loan originations and to make more money.
  2. You improved your credit over time and now qualify for a lower car payment and interest rate.

Both of these observations are common sense and the reason for why you can save a lot of money, especially if you drive your car for personal use. You improved your credit with the credit bureaus from prime credit (i.e. between 680 and 720 on your credit report) to super prime credit (i.e. above 720), you're not facing any financial difficulties and therefore, your new lender will be likely one of the following ones:


You successfully got out of the prime credit segment (a FICO between 680 - 720 on your credit history) and moved into the super prime credit segment (FICO above 720). Credit Unions love super-prime members. These lenders have a community charter, are FDIC approved and are non-profits providing a great customer experience. Therefore, the rates are as low bank of america auto refinance interest rates they get.

In the following, we will walk you through the exact steps to pay off your Bank of America loan. If you want to skip the details and refinance now through a simple loan application, get an offer with a few clicks and with no impact on your credit.

Step by step guide to refinance


Follow these 7 steps to refinance your Bank of America auto loan:

  1. Figure out your payoff amount
  2. Check if you have positive bank of america auto refinance interest rates negative equity
  3. Compare rates offered by lenders or contact a refinance broker
  4. Calculate your new rate and monthly payments
  5. Sign all the paperwork
  6. Payoff your existing loan
  7. Set up auto-pay with your new lender


Experts’ take on how to refinance


Experts in the refinancing space such as CreditKarma, NerdWallet and Bankrate are strong proponents of auto loan refinancing. That is true for Bank of America customers like you as well as any other auto loan company. NerdWallet even released a list of the 10 Best Auto Loan Refinancing Lenders, followed by Xbox one wired controller walmart, LendingTree, Investopedia and The Balance.

Personal finance is an important topic. We have seen studies that show how happiness and mental well-being directly correlate with stable and reliable finances. Therefore, we strongly recommend doing a lot of research and then refinancing your Bank of America auto loan.

The experts above have a good general understanding of personal finance. Given our backgrounds (MiT, McKinsey, Bain, Merrill Lynch, Stanford Graduate School of Business, Carvana etc) we are the absolute, unquestioned and unchallenged authority on auto loan refinancing in particular and have published a thorough thought leadership piece about it.

How much does it cost to refinance?


The cost to refinance your Bank of America are somewhere between $15 and $449. In theory, refinancing doesn't cost anything. You don't have early repayment fees on your Bank of America auto loan and the only charge that applies is the fee for the Department of Motor Vehicles (DMV) to change the lienholder on your vehicle title.

However, depending on who you work with to refinance your Bank of America auto loan, you might be incurring some (hidden) fees of up to $449. Take a look at our thorough refinance lender comparison to get a good overview of the cost related to refinancing your Bank of America loan by refinancing company.

How soon can you refinance?


You're eager to refinance your Bank of America loan? Great, you should absolutely work towards lowering your Bank of America payments through refinancing.

Car dealerships make most of their money on finance and insurance products. Therefore, there's a good chance that you are overpaying and can save money through refinancing - already the day you drive off the lot! That said, you will save the biggest amount of money from refinancing after you made 12 to 18 payments. That's when you will notice the effect from improving your credit above and beyond good (i.e. prime) credit.

That said, we recommend checking regularly: you can get a free refinance offer with no impact on your credit in three simple steps.

Will refinancing hurt your credit?


Refinancing will not hurt your credit! If you have the app CreditKarma installed on your phone, take a peek at what factors determine your credit. You will find the following:

  • Number of Hard Inquiries (less is better)
  • Age of Credit history (more is better)
  • Credit Card Utilization (less is better)
  • Total Accounts (more is better)
  • Derogatory Marks (less is better)
  • Payment History (more is better)

None of these factors is impacted negatively if you obtain a refinancing offer for your Bank of America loan. Lenders don't need to do a hard credit inquiry to make you a firm refinance offer. Neither do they charge an application fee. From a soft credit pull, we can see your whole credit file and estimate your rate.

Should you decide to accept the refinance offer, the new lender will have to perform a hard inquiry in order to add your new loan to your credit file. The hard inquiry, however, only happens after you have been approved.

We argue that the positive impact of refinancing your Bank of America loan outweigh the negative impact of the hard credit inquiry: after you refinance your Bank of America loan, you will have a lower rate and lower monthly payments. As a result, the likelihood that you will be able to establish a perfect payment history increases which will drive your score up campgrounds near outer banks north carolina happens if I pay extra?
The answer is simple: your loan term will shorten but your monthly payment will stay the same. A number of our customers hope they can reduce their monthly payments through paying extra but no lender will do that.

To lower your monthly payments, you have to refinance your loan. If you haven't considered refinancing your Bank of America loan yet, you definitely should: not only can you reduce your monthly payments within 2 minutes or less, your total interest expense will go down as well and as a result, you can save $600 every year / $50 every month.

Expected Savings from refinancing?


We performed a study on the top 40 auto loan companies to refinance and found that the average Bank of America loan rate is around 8% (within a range of +/- 4%). If you made your payments for 6 / bank of america auto refinance interest rates / 18 consecutive months, you're guaranteed to be able to save money on your Bank of America loan.

Your new interest rate should be on the order of 4% or below. That means you will save $400 every year / $33 every month if your remaining loan balance is around $10,000 and you refinance. Usually, we see higher loan balances when refinancing our customers, e.g. around $15,000. If your loan balance is around $15,000 you will save $600 every year / $50 every month when you lower your rate by 4%.

For a guaranteed rate in less than 2 minutes, open WithClutch.com, enter your phone number, select your goal (e.g. 'Lower my monthly payment') and click on 'Apply Now'. Our process will not hurt your credit and you'll receive a firm and guaranteed rate with not more than 5 clicks. Should you have any further questions, check out our FAQs.

What are current refinance rates?


We can help you get the following Bank of America refinance rates:

Credit New car Used car
760+ 2.69% 3.49%
700-760 3.00% 4.25%
650-700 5.50% 6.50%
600-650 9.75% 10.75%
550-600 15.50% 17.50%
Below 550 22.00% 22.00%

As mentioned above, Bank of America car loan rates vary a lot by credit score, i.e. lowest rate for excellent credit to highest rate for challenged credit. Yet, the rates are usually the same no matter breakfast restaurants in kill devil hills nc you live in the United States - be it Hawaii or Maine, Alaska or Florida. We therefore recommend taking a look at your Bank of America refinance offer for your exact and personalized refinance terms.

Can you refinance your Bank of America loan with the same lender?


The answer is short and sweat: no, you cannot refinance a Bank of America loan with the same lender. Bank of America does one of two things with your loan:

  • Keep it and generate profit over the course of the loan and while you are paying your interest.
  • Sell your loan to an institutional investor or the public through a securitization to realize a lump sum profit immediately.

In both of those cases, the institution holding your loan is expecting your monthly payments. When you refinance, however, you change bank of america auto refinance interest rates expected cash flow to Bank of America, which impacts Bank of America's bottom line. Bank of America would not allow that.

Hence, if anyone challanges you 'Does Bank of America refinance?' or 'Can you refinance through Bank of America?' the answer is simple: Bank of America won't let you refinance your car loan if you currently have your loan with Bank of America. Instead, you need to find a new lender offering a lower rate.

Fortunately, we recently studied the best car loan refinance companies and wrote a thorough review. In a nutshell, only WithClutch offers a fully digital pre-qualification experience, even for borrowers with minimum monthly income and without charging unreasonable fees. We do our best to give our clients the best auto refinance loans. Our partner lenders can offer the lowest rates and can help with lease buyouts as well as refinancing.

Best bank for refinancing your Bank of America loan?


In our study about the best car loan refinance companies, we explained that we need to distinguish between:

  1. Lenders (i.e. banks and Credit Unions who ultimately replace your Bank of America loan with a new one with a lower rate)
  2. Refinance Brokers (i.e. companies that create a marketplace between lenders and you as the customer with a Bank of America loan)
  3. Affiliate Websites (i.e. websites that rank high in Google's search algorithm for e.g. 'how to refinance my Bank of America loan' aiming to get you to submit your contact details)

Best Auto Loan Refinance Companies of 2021

  • Best for Great Credit: Credit Unions
  • Best for Checking Rates Without Impacting Your Credit: Capital One.
  • Best Trusted Name: Bank of America, Chase or WellsFargo.
  • Best for The Most Options: WithClutch.
  • Best for Members of the Military: USAA or Navy Federal CU.
  • Best for Peer-to-Peer Loans: LendingClub although not recommendable.
  • Credit Union with lowest rates: Digital Credit Union and PenFed.

Feel free to submit your details on our digital and 100% online refinance platform for some free advice on which company would be the best fit for you. You'll get a reliable answer with three clicks and in less than 2 minutes.

Things not to do when refinancing


Refinancing your Bank of America auto loan may bank of america auto refinance interest rates intimidating and overwhelming. That's totally understandable, you don't refinance your Bank of America loan every day and therefore want to avoid a few pitfalls:

Reasons you should not refinance


You should not refinance your Bank of America auto loan if you end up with a higher overall interest charge. That means, you don't want to refinance your loan if you end up in a worse financial product, with a higher interest rate. Let's take a look at the following example:

if you're currently paying 8% and $450 monthly, you don't want to accept a loan at 8% even if the monthly payment might be $400 only because your lender stretched the loan over a longer period of time. It is definitely possible but we highly recommend against it.

We've seen thousands of success stories of clients refinancing their Bank of America auto loans. Some of our clients wanted bank of america auto refinance interest rates reduce their monthly Bank of America payment while keeping the loan term constant. Other clients wanted to reduce the monthly payments by even more and therefore stretched the loan term to 60, 72 and some even 84 months.

And other clients had positive equity in their car - i.e. the remaining Bank of America loan balance was lower than the value of their car - and therefore decided for themselves that the best auto loan from all of our loan offers would be the one with cash-out.

Still, one question a lot of our customers ask us is this: 'I haven't been great about making my payments so my credit score hasn't improved a lot quite yet. However, I really want to lower my monthly payments. Should I refinance, accept a higher rate and stretch the loan over a longer period of time?'

We don't encourage such a refinance. It's a bad financial decision and you're locking yourself into making a lot higher payments over a long period of time. Don't be penny-wise and pound-foolish!

Can I skip a car payment?


You're short on cash and are wondering whether you can skip a car payment with Bank of America? The answer is yes, you can defer one or more payments on your existing auto loan. You have to talk to Bank of America about the deferral first though. You can't just not pay or you risk collection calls and ultimately a repossession.

Ideally, you give Bank of America a call at 1-800-215-6195 and describe your situation. Bank of America's goal is for you to make your payments throughout the whole term of the loan. Finance charges will continue to accrue on the unpaid loan balance, which means you will end up paying more on your loan after all. But for as long as you communicate well with Bank of America, they will defer one or more payments out of courtesy and to help you with your repayment.

All that said, you can lower your Bank of America payments through refinancing if you've made all your latest payments on time. In three simple steps, you can find out how low your payments could be without having to skip a payment or two.

Does Bank of America have a grace period?


The Bank of America late payment policy provides a grace period of 7 to 15 days. Grace periods vary from lender to lender and due to the coronavirus pandemic, banks have become a lot more lenient with their borrowers.

Late fees vary drastically by loan, the minimum late fee we've encountered was 5% of the monthly payment amount. However, we strongly advise not to take advantage of Bank of America's grace period unless you have an emergency. You'd be putting your credit at risk, which can have a long-term, negative impact on your personal finances.

Instead, we recommend exploring if refinancing can help you reduce your monthly burden and potentially even provide unexpected cost savings. Provide your phone number and follow our three simple steps to get a firm offer, 100% online and with no hit on your credit.

How long does Bank of America take to repossess my car?


Repossession law varies slightly from state to state and range from 3 to 5 months after you stopped making payments on your Bank of America loan. Each individual retail and installment contract - the contract you signed when you got your car and Bank of America loan - states what constitutes a default.

Some states and contracts even trigger a repossession within 45 days (or a month and a half) of being in default. You are in default when you stopped making your payments and for as long as you haven't paid the Bank of America late fees.

Just catching up with your missed payments making Bank of America whole doesn't automatically mean you're not in default anymore. You really need to pay Bank of America everything you owe including fees to be not considered in default any longer.

Refinance your Bank of America loan now


Haven't explored refinancing yet? Take a look at our exhaustive article about all the auto refinance companies and you will realize, WithClutch.com is the only fully digital platform that lets car owners like you do so from the comfort of their own home. No need to set a foot in a bank or credit union. You can lower your rate or get cash in as little as 20 seconds.

Follow three simple steps to refinance your auto loan, get approved in seconds and save thousands in minutes.
Источник: https://www.withclutch.com/faq/how-to-refinance-my-bank-of-america-auto-loan

Auto Loans

1Rate valid for 30 days from the date of original application submission.

2Bank of America works with thousands of automobile dealerships across the country to assist our customers with the financing of their new and used vehicles. Bank of America is not affiliated with these dealerships and does not require any particular dealership for your vehicle buying experience. Consequently, Bank of America makes no warranties and representations and is not otherwise responsible for any aspect related to the purchase of your vehicle and associated products and services from these authorized dealerships.

3Auto loan preferred interest rate discount of 0.25% to 0.50% is based on reward tier and valid only for enrolled Preferred Rewards members or Preferred Rewards for Wealth Management clients at the time of auto loan application who obtain a Bank of America auto purchase or refinance loan. The maximum preferred interest rate discount on a Bank of America auto loan is 0.50%. This preferred interest rate discount is not reflected in our published rates on our website but will be reflected in the interest rate quoted upon loan approval. Discounts are only available on auto loan applications submitted by you to Bank of America and not applications submitted through dealerships. Benefit is non-transferable. Subject to credit approval. Standard underwriting guidelines and credit policies apply.

Banking, automobile loans, mortgage and home equity products offered by Bank of America, N.A., and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation. Home Icon for Equal Housing Lender Equal Housing Lender. ©20XX Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.

Источник: https://www.ml.com/solutions/auto-loans.html

Bank of America Auto Refinance Review


ConsumersAdvocate.org Rating: 4.3 / 5 (Excellent)

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The following companies are our partners in Auto Refinance: LendingTree, myAutoloans, AUTOPAY, First Choice, MaxCarLoan, 1800FreshStart, RATEGENIUS, LightStream, Auto Credit Express, RefiJet, Auto Approve, Car.Loan.com, Auto Refinance Analyzer, PenFed, FiWize, and Gravity Lending.

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Founded in 1874 and based in North Carolina, Bank of America is a leading provider of financial products to individual consumers, businesses, and large corporations. Part of the company's services include providing auto loan programs for new and used cars. Lease buyout and auto refinancing options are also available. Auto loans from Bank of America are only offered for private use and for vehicles purchased from franchise dealerships.


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Источник: https://www.consumersadvocate.org/auto-refinance/c/bank-of-america-auto-refinance-review

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