Mortgage Refinance and Home Refinancing from Bank of America (2024)

FAQs

What credit score do you need to refinance with Bank of America? ›

Bank of America doesn't have a minimum credit score requirement. However, you are more likely to be approved for auto refinancing if you have a good or excellent credit score (670 or higher).

Bank of America offers mortgages nationwide. Because of its competitive rates, convenient application options and low down payment loan products, Bank of America has earned a spot on several of our best mortgage lender lists: Best Mortgage Lenders. Best Mortgage Lenders For First-Time Homebuyers.

Conventional refinancing is one of the most common types. You'll need at least a 620 credit score to refinance your conventional loan (or into a conventional loan) — though at that score, you'll likely need a DTI ratio of 36 percent or less, which can be limiting.

Best mortgage refinancing lenders

Bank of America: Best overall. Better: Best for online-only applications. SoFi: Best for minimum equity requirements. Ally: Best for no lender fees.

In addition to an adequate credit score, you must have built up enough equity in your home to qualify for a refinance. Home equity is the percentage of the home's value that you own and is the amount you would get if you sold the house and paid off your mortgage. The more equity you have, the better.

Bank of America has a preapproval process for prospective cardholders, which they refer to as either pre-selected or customized offers. There are a few different ways that someone can get preapproved: You may receive a pre-selected offer via mobile, online banking or in person.

What credit score does Bank of America require for a mortgage? Bank of America requires a minimum credit score of 600 to qualify for a mortgage. That applies to VA and FHA loans. For a conventional loan from Bank of America, you'll need a credit score of at least 620.

What score model was used to calculate my score? Your score in Online Banking is a FICO^® Score 8 based on TransUnion Data to manage your account and that is what Bank of America shares with you.

In general, lenders expect you to have a minimum of 20% in home equity to refinance. In other words, the loan balance must be 80% or less of the home's value. If you don't have enough equity to meet the lender's requirement—especially if you want to take cash out of the home—you may not be eligible to refinance.

How much income do I need to refinance? ›

To qualify for a refinance, take a look at your debt-to-income ratio. The new monthly mortgage payment shouldn't be more than 30% of your monthly income. To refinance $200K over a 30-year fixed term, you'll need an income of approx. $5,200/month.

You don't need a down payment to refinance, but you'll likely have to come up with cash for closing costs. Some lenders let you roll closing costs into the mortgage to avoid upfront expenses. You can also try negotiating with the lender to waive them.

A rate-and-term refinance for a conventional mortgage loan typically requires at least a 620 credit score — that is, as long as your loan-to-value ratio is 75% or less, you have at least two months of cash reserves in the bank, and your debt-to-income ratio is under 36%.

Most loan types require a minimum 620 credit score to refinance a mortgage, though the requirement may vary by loan program. Lenders tend to offer lower refinance interest rates to borrowers with higher credit scores. Getting your credit in top shape before refinancing is the best way to snag competitive rate offers.

The credit requirements for a mortgage refinance loan can vary by lender and type of mortgage. In general, though, you'll need a credit score of 620 or higher for a conventional mortgage refinance. Certain government programs require a credit score as low as 500 in some cases or may have no minimum at all.