Is Bank of America NA An Expensive Mortgage Lender?

We compare mortgage interest rate and loan related closing costs at Bank of America NA with other lenders for mortgages with similar borrower characteristics:

Interest Rate: lower than average (-0.17%)
Loan Related Closing Costs: lower than average (-$327)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, Bank of America NA originated 123784 mortgages, a national market share of 2.0%. It was most active in NJ (4.7% market share), CA (4.4% market share), and MA (3.5% market share).

On average, Bank of America NA’s interest rates were lower than those of comparable mortgages at other lenders (-0.17%).1The comparable mortgages control for Bank of America NA’s distribution of loan term (e.g. 30 year vs 15 year), loan-to-value (LTV), debt-to-income (DTI), loan amount, loan program (e.g. Conforming/FHA), loan purpose (e.g. purchase/refinance), and county. Interest rate and loan related closing costs are estimated based on fixed rate mortgages only, whereas market shares include all purchase or refinance mortgages. Its average total loan related closing cost was $4382, which was lower than those of comparable mortgages at $4709, with a difference of -$327. Overall, we estimate that Bank of America NA tends to be an cheap lender, with a cost-adjusted-rate difference of -0.18% compared to comparable mortgages at other lenders.2Cost adjusted rates were computed based on each percent of the loan amount in loan related closing costs being worth 1/6 of a percentage point in interest rate. Nevertheless, we recommend comparing your rate and fees with at least a few other lenders before signing with Bank of America NA.

Bank of America NA originated Conforming, FHA, Jumbo and VA mortgages for new home purchases. It also originated Conforming, FHA, Jumbo and VA mortgages for refinances. We breakdown its interest rate and total loan related closing cost on by each of the mortgage types it originated below:

Home Purchase Mortgages from Bank of America NA compared to other lenders

Conforming FHA Jumbo VA
Interest Rate Difference -0.22% -0.09% -0.16% -0.05%
Loan related Closing Cost Difference -$249 +$193 -$442 +$982
Cost Adjusted Rate Difference -0.23% -0.08% -0.17% +0.02%

Based on the table above, Bank of America NA is cheap for Conforming, FHA and Jumbo purchase mortgages. It is similar to other lenders for VA purchase mortgages.

Mortgage Refinancing from Bank of America NA compared to other lenders

Conforming FHA Jumbo VA
Interest Rate Difference -0.12% +0.06% -0.17% +0.16%
Loan Related Closing Cost Difference -$343 -$199 -$1453 +$150
Cost Adjusted Rate Difference -0.13% -0.00% -0.21% +0.16%

Based on the table above, Bank of America NA is cheap for Conforming and Jumbo mortgage refinance. It is similar to other lenders for FHA mortgage refinance. It is more expensive than other lenders for VA mortgage refinance.

Other information about Bank of America NA:

Regulator: Consumer Financial Protection Bureau (CFPB) 
Top holder: BANK OF AMERICA CORPORATION
Registered city and state: Westlake Village, CA, 91361

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Footnotes   [ + ]

1. The comparable mortgages control for Bank of America NA’s distribution of loan term (e.g. 30 year vs 15 year), loan-to-value (LTV), debt-to-income (DTI), loan amount, loan program (e.g. Conforming/FHA), loan purpose (e.g. purchase/refinance), and county. Interest rate and loan related closing costs are estimated based on fixed rate mortgages only, whereas market shares include all purchase or refinance mortgages.
2. Cost adjusted rates were computed based on each percent of the loan amount in loan related closing costs being worth 1/6 of a percentage point in interest rate.