Bank of America is one of the largest banks in the US with many branches and consequently a wide customer base. It is a renowned bank when it comes to getting secured loans. However many people, especially those that are not customers of Bank of America wonder whether the bank offers any personal loans.
Bank of America does not offer unsecured personal loans. However the bank has some loan solutions that might consider as “personal loans” and if you really want an unsecured personal loan there are alternative financial institutions that you can speak to.
You might even consider using online lenders or peer to peer lenders. With such other alternatives the interest rates are low and you do not have to worry too much about your credit score.
With other lenders you can be able to pay for your dream vacation, consolidate your debts, buy a car, pay for medical bills, renovate your home and so much more. When looking for a personal loan however, it is advisable to always remember to be sure that you can be able to repay the loan.
Bank of AmericaPersonal Loan Rates
As stated earlier, Bank of America doesn’t offer unsecured personal loans. However, they offer the following types of loans that you can choose from if you have a good credit score, have employment or a stable source of income and you have collateral.
Mortgage Loans– this is a loan that you take to purchase a home through a mortgage. The mortgage loans at Bank of America are either 30 year fixed or 15 year fixed. You will however require a down payment of 5% or more of the purchase price.
Take for instance a scenario where you want to purchase a house worth $250,000. You would then be required to pay at least $12,500 for you to get the mortgage loan.
Mortgages with fixed interest rates are a good option. This is because you are aware of the rates you will be paying all through and therefore you are able to organize yourself ahead of time. With a varying rate, the interest may change becoming lower or higher on certain months dependent on some factors.
This can be benefiting to you only when you end up paying a lower amount overall but there is no way of telling for sure that it would be beneficial. The rates are somewhere between 3% and 4% depending.
Refinancing Loans – one of the ways you can get a Bank of America personal loan is when you refinance your mortgage. This means that your old mortgage will be paid off and you will have a new mortgage with Bank of America in place. In refinancing you can get equity out of your home which you can use for other purposes.
When refinancing is good, it should only be done when it is bringing you value and not causing you more problems. For instance, you should not refinance if you are not getting better interest rates. If you have been paying off your mortgage loan religiously, then chances are it has helped your credit score grow. This further means that you can get better terms on your new loan.
Using the Bank of America personal loan calculator you can be able to determine the interest and the monthly payments you will be making on your new mortgage loan after refinancing. It is only advisable for you to refinance when you are sure you are getting the best terms.
Home Equity– you can also get a home equity line of credit with Bank of America. With this loan, the bank allows you to borrow against the equity of your home. Your home therefore acts as collateral for the home equity Bank of America personal loan.
You can currently get this loan at rates starting from 5.90%. There are discounts on the interest rates for automatic monthly payments, for initial withdrawals and for preferred rewards clients. You can quickly estimate your home’s worth online using their handy tool but for the real worth of your home it will have to be appraised. There is also a calculator on their website that you can use to determine your payments and the rate.
With the home equity line of credit you have convenient access to funds. You can apply online and there are no closing fees, application fees or annual fees.
Auto Loan– another Bank of America personal loan you can get is the auto loan. Whether you are looking to buy a new car, buy a used car, refinance your current loan or buy out your lease you can get a loan at Bank of America. The Bank of America personal loan interest rates offered here are competitive too but they vary from one condition to the next.
You can get 2.39 APT for a new car, 2.64 on a used car, and 2.89% on refinance. For the auto loans the bank promises you can access funds in 24 hours. The application and qualification process only takes a minute to complete and get an answer.