Is mortgage refinancing right for me?
The goal of refinancing your home loan is to help make your monthly mortgage payments more affordable by refinancing to a lower interest rate or from an adjustable-rate into a fixed rate loan.
You may be eligible for mortgage refinancing if:
you have at least 5% equity built up in your home,
OR at least 2.5% if you have an FHA loan (How do I know?)
This calculator will help you estimate the current amount of equity you have in your home and help you determine if that percentage may qualify you for refinancing.
you are current on your home loan payments
If you do not have enough equity built up in your home, but have been current on your home loan payments for at least the past 6 months, you may still qualify for mortgage refinancing through the Home Affordable Refinance Program.
Program at a glance
Call and complete an application. We will send you a welcome package containing important information about refinancing your loan and the costs involved.
We will begin to review your application. During this time we will order a home appraisal to determine your home’s market value and pull a credit report for all of the loan applicants.
If your loan is approved, a settlement date will be scheduled for you, and any co-borrowers, to sign the final loan documents.
Get more details about the steps of mortgage refinancing.
Footnote 1 This calculation is for informational purposes only, is based upon unverified information you provided at our website and should not be construed to mean that you qualify for a home loan refinance. We are required to consider other factors in assessing whether you qualify for a home loan refinance.
Footnote 2 Clarity Commitment is a registered trademark of Bank of America, N.A.
Footnote 3 Refinancing may increase the total number of monthly payments and/or the total amount paid when compared to your current situation.
How do I get started with refinancing?
Getting started with refinancing begins with a phone call. We will take your financial information over the phone and fill out an application with you.
Collect your financial information
Having a few important documents ready before you contact us will help us find the refinancing option that is right for you. You will need to gather a set of documents for everyone listed on your home loan. These include:
your loan number
proof of monthly gross (pre-tax) income, i.e. paystubs
two years of income tax returns
two months of checking and savings account statements
account balances on all other debts (e.g.: student loans, car loans, etc)
Now that I am in the process, what is next?
If you are already in the process of refinancing your loan, we can help you understand what you need to do next.
I have called and completed my application.
Once you have called and completed your application, we will send you a welcome package containing a "Good Faith Estimate" that spells out the settlement costs associated with the loan, along with a Truth in Lending Disclosure Statement. On many loan products we also provide our Clarity Commitment®en_clarity_trademark—a simple, one-page summary that clearly shows key loan terms, is written in plain language and is designed to help you understand the loan you are applying for.
I have received my welcome package.
After receiving your welcome package, you will need to compare the proposed loan terms to your current loan. If the proposed new principal and interest payment is not an improvement over your existing loan terms, refinancing may not be right for you, unless you are refinancing to obtain a fixed rate to avoid any future monthly payment increases.
We will begin to review your application. During this time we may contact you for additional documentation. If we do, it is important that you get back to us as quickly as possible to avoid any delays. We will also order a home appraisal to determine your home’s market value and pull a credit report for all of the loan applicants. We will review the property appraisal with your credit history and overall financial situation to make a decision whether to approve your loan request.
From the time of your initial phone call until you receive a decision from us it may take approximately 75 days. We will contact you regularly during this time to update you on your status. You can also check the status of your application online Opens a New Window. at any time. It is important that you continue to make your normal mortgage payments until you sign the loan documents and your refinance takes effect.
If you are experiencing a financial hardship, you may qualify for more affordable payments under the Home Affordable Modification Program.
I have been approved for refinancing.
If your loan is approved, you will go through a closing process, just like when you first bought your home. At the closing, you and any co-borrowers will need to sign a full set of loan documents and pay for closing costs, unless all or some of them were financed into the loan amount.
If you did not qualify for refinancing, you may still be eligible for other home loan assistance solutions that could help make your monthly payments more affordable.
Footnote 2 Clarity Commitment is a registered trademark of Bank of America, N.A.
Home Loan Assistance Frequently Asked Questions
Refinancing may make your monthly mortgage payments more affordable by reducing your interest rate, extending your loan repayment period or a combination of both.en_refinance If you choose a fixed-rate mortgage, you will have a stable interest rate for the life of the loan.
Yes, there are costs associated with refinancing. These can include closing costs, points and application fees. We may let you roll these costs into the total mortgage amount to reduce the cash you must bring to closing.
Typically, you can finance up to 95% of the appraised value of your home or 97.5% with an FHA loan, but the amount can vary depending upon your circumstances. The equity you have in your home is based on the value of the home and what you currently owe that is secured by the property.
If you were denied home loan assistance, such as a request for a loan modification, short sale or deed in lieu you may be able to dispute the decision. You can file an escalated case with us if you have reason to believe any of the following are true:
- you met all the criteria for home loan assistance but were not properly evaluated for assistance or were improperly denied assistance. This may include:
- you did not receive adequate notice from us about your foreclosure alternatives
- you were not given appropriate time to respond to communications from us during your loan review process
- your loan was referred to foreclosure prematurely, or we did not suspend foreclosure activities when we were required to do so
You can also file an escalated case if either of these two specific concerns apply to your loan:
- you have a reasonable belief that your mortgage loan is being serviced in a fraudulent manner
- you have retained a lawyer to help you resolve a mortgage dispute with Bank of America
If you have reason to believe that any of the above apply in connection with your loan review and affected your eligibility for home loan assistance, you may file an escalated case with us to review your concerns.
Please note that inquiries about a pending request for home loan assistance or general questions about the servicing of your mortgage do not meet the requirements for an escalated case. For general servicing questions, please call 1.800.669.6607 (Monday-Friday, 7am-7pm local time).
To file an escalated case, you or any third party representing you, such as a housing counselor or attorney, should send us a brief letter describing the specific reasons you believe one of the above scenarios applies to your loan or to your application for home loan assistance. If you are represented by an attorney, please have your lawyer submit this request on your behalf.
Escalated case requests must be sent by mail to the following address:
- Bank of America Corporate Center
Attn: BAC Escalated Case Unit
P.O. Box 940508
Simi Valley, CA 93094-0508
Please note that if a third party, such as an advisor or a nonprofit advocate, contacts us to submit an escalated case on your behalf, we must have your written authorization before we can communicate with them about you or your loan. Without your written authorization, we will not be able to discuss your home loan with them. We can provide you with an authorization form upon request.
What to expect after submitting your request
Within three business days after receipt:
- If your submission meets the requirements for an escalated case, within three business days of the receipt of your request, we will send you a written acknowledgement that we have received your request. This acknowledgement will also include the estimated date by which your escalated case should be resolved, along with a toll-free number for the Escalated Case Unit.
Within 15 calendar days after receipt:
- In most cases, within 15 calendar days of receiving your request, we will mail you a written response describing the proposed resolution of your request and any next steps to be followed by you or by us. If your matter cannot be resolved within 15 calendar days, we will notify you of the delay and give you a new estimated resolution date. This new estimated resolution date, in most cases, will be no longer than 30 calendar days from the date we received your original escalated case.
Checking the status of your escalated case
Your written confirmation will include a toll-free number you can call for information about your escalated case.
1 Refinancing may increase the total number of monthly payments and/or the total amount paid when compared to your current situation.