Bank of America review

Reviewed by the Editorial Team · Updated July 10, 2026 · 6 min read

A major national bank whose Preferred Rewards members can earn interest-rate or closing-cost reductions.

Bank of America by the numbers

Source: federal HMDA data (2025), FFIEC/CFPB. *Approval rate = loans originated ÷ (originated + denied). It reflects a lender's channel and borrower mix — wholesale, online and refi-heavy lenders run lower because many applications are rate shops that never close — not how hard it is to work with. See our approval-rate breakdown.

Bank of America at a glance

Bank of America is one of the country's largest retail banks, headquartered in Charlotte, North Carolina, and its home-lending arm sits inside that broader banking relationship rather than operating as a standalone mortgage shop.

Borrowers apply online, by phone with a loan officer, or through a financial center, and the pitch is largely built around depth of relationship: if your checking, savings, or investment accounts already live at the bank, the mortgage is designed to plug into that ecosystem.

In 2025 the bank originated 88,530 mortgages worth roughly $37.3 billion, with an average loan size near $421,000 — a figure that skews higher than many lenders and reflects a customer base concentrated in expensive coastal markets.

California alone accounted for more than 41,000 of those loans, followed by Florida, Texas, New Jersey, and its home state of North Carolina.

Where Bank of America's approval rate sits

Bank of America's 2025 approval rate of 54.8% sits against the 76.6% national average. Read it as a signal of channel, not strictness — wholesale, online and refinance-heavy lenders run lower because so many applications are rate shops that never close.

The reported 54.8% approval rate is on the lower side, but that largely mirrors a big-bank application mix: a wide funnel of inquiries, relationship-driven pricing, and a book weighted toward jumbo and higher-balance borrowers, rather than an unusually strict underwriting posture.

The relationship angle sharpened in May 2026, when Bank of America folded its long-running Preferred Rewards program into a rebranded BofA Rewards structure.

Qualifying deposit and investment balances still unlock tiered perks, and at the top Premier tier borrowers can pair automatic payments with an eligible deposit account to reach an interest-rate reduction of up to 0.375% on a new purchase or refinance mortgage.

Who Bank of America is best for

Bank of America suits existing customers who already keep meaningful deposit or investment balances there and want to convert that relationship into a lower rate or reduced closing costs.

It also fits low- and moderate-income and first-time buyers in eligible areas who can stack the bank's grant programs, plus higher-balance borrowers in coastal markets comfortable working with a large national institution.

Loan programs at Bank of America

Its most notable programs and specialties:

• Affordable Loan Solution mortgage — as little as 3% down with no required mortgage insurance, aimed at low- to moderate-income and first-time buyers
• Down Payment Grant — up to $10,000 or 3% of the purchase price (whichever is less) in eligible markets, part of the Community Homeownership Commitment
• America's Home Grant — up to $7,500 toward non-recurring closing costs or a permanent rate buydown
• Conventional fixed- and adjustable-rate mortgages, plus jumbo financing for higher-balance purchases
• FHA and VA government-backed loans
• BofA Rewards relationship pricing — up to a 0.375% rate reduction at the Premier tier with autopay from an eligible deposit account

Typical industry minimum down payment by core loan type — Bank of America's own minimums or credit overlays may run higher:

Where Bank of America lends most

By federal HMDA records, Bank of America's largest 2025 markets were California, Florida, Texas, New Jersey and North Carolina. Explore local rates, home prices and down-payment assistance for each:

The verdict

Bank of America is a strong option when the mortgage is one piece of a broader banking relationship — the deeper your balances, the more the BofA Rewards discounts pay off.

Its grant programs also make it genuinely competitive for eligible lower-income and first-time buyers. Borrowers without an existing relationship or grant eligibility should still compare its rate and fee quote against dedicated lenders before deciding.

How to compare Bank of America

Shopping a few lenders is the single most reliable way to save. Before you commit to Bank of America:

1. Get three or more Loan Estimates in a two-week window — the bureaus treat it as one inquiry.
2. Compare the APR, not just the headline rate — it folds in the fees.
3. Weigh service and loan-type fit, not price alone.
4. Verify licensing on NMLS Consumer Access (Bank of America's HMDA filer ID: B4TYDEB6GKMZO031MB27).

Benchmark whatever you're quoted against today's the national rate benchmark.

This review is editorial and independent — Bank of America did not pay for or approve it, and all figures are from public federal data. It is general information, not a recommendation or personalized advice. Confirm all terms directly with the lender.