Before we dig deeper into Bank of America mortgage rates, it’s wise to learn about the company background firsthand. Bank of America Merrill Lynch has been helping businesses and communities to prosper and develop for over 200 years long with its long history.
It has endured the commitment toward communities, customers, and clients. It is planted in the roots of knowledge that customers’ success is connected to the company.
The roots go as far as 1784 to 1850, taking roles in evolution of young United States. As of June 30, 2017, Bank of America runs operations in every 50 states of America.
Just like any other mortgage companies, Bank of America mortgage rates change every single day. Today’s low mortgage rates offered by Bank of America U.S. Trust can be viewed online to check it accurately. It provides many types of home loans for customers to choose depending on a customer’s specific needs.
Those loan types include Adjustable-rate mortgages (ARMs), Fixed-rate mortgages, FHA & VA loans, Jumbo Loans, and Affordable Loan Solution mortgage. These loan types have different benefits and perks to suit customers in various cases possible. Those loan types will absolutely affect mortgage rates a client has too.
Loan Types Offered that Affects Bank of America Mortgage Rates
Bank of America mortgage rates first offer Fixed-rate mortgages which let clients see the interest rate for a lifetime of their loan. Besides that, this mortgage type will make interest and principal monthly payments remain unchanging for as long as the loan applies.
It can help customers who prefer to have their monthly payments predictable with its fixed, consistent rate. That will greatly let customers to set budgets easier.
Then, another mortgage type that Bank of America mortgage rates has is Adjustable-rate mortgages (ARMs). Contrary to Fixed-rate mortgages, this home loan is not predictable as it keeps changing.
Mortgage rates may periodically change during its loan term, and monthly payments may decrease or increase following changes of mortgage rates. It is also known as variable-rate mortgages, good for those planning to move before introductory fixed-rate period ends.
Bank of America mortgage rates is also impacted by Jumbo loans mortgage type. This home loan is especially helpful to customers who want to borrow higher amount of loan.
Compared to the previous two home loans, Jumbo loans is available both as Adjustable-rate and Fixed-rate loans. The loans are only considered as jumbo when its amount exceeds that of loan-servicing limits which is set by Freddie Mac and Fannie Mae.
As for Affordable Loan Solution mortgage that affects Bank of America mortgage rates, mortgage insurance is not required at all. It also offers a low down payment up to 3%. If a homebuyer happens to be qualified, then this loan type is certainly a good option.
Last but not least is FHA & VA loans available in Bank of America mortgage rates. These loan types are provided by government, mainly the U.S. Department of Veterans Affairs and Federal Housing Administration.
It is useful due to options of minimum down payment with income guidelines and flexible credit.