Bank of America's Refinance Process and What It Costs
Bank of America allows you to refinance an existing car loan through their auto lending department, whether or not you financed the original loan with them. The process involves submitting information about your current loan, your vehicle, and your financial situation so they can decide whether to offer you a new loan at a different rate and term. There is no upfront fee to request a refinance quote, but the bank will pull your credit report, which creates a hard inquiry on your credit.
The actual cost of refinancing depends on what rate Bank of America offers you compared to your current rate, and how long you extend the loan. If you refinance into a lower rate, you pay less interest over time — but if you extend the term from, say, 48 months to 72 months, your monthly payment drops but you pay interest for longer. Bank of America does not charge a prepayment penalty if you pay off your current loan early, which is what happens when you refinance with them or another lender.
The bank may charge you for a title transfer or registration if your state requires it, but these are state fees, not Bank of America fees. Ask the bank upfront whether they handle the title work or whether you need to do it yourself.
Key Takeaways
- Bank of America refinances cars financed elsewhere and does not charge an upfront fee to review your request, but they will pull your credit report.
- Your new rate depends on your credit score, income, employment history, and the age and condition of the vehicle — not just on current market rates.
- You can refinance with Bank of America online, by phone, or in person at a branch, and the process typically takes three to seven business days from approval to funding.
- If your current lender charges a prepayment penalty, you are responsible for that fee; Bank of America will not pay it as part of the refinance.
- Refinancing makes sense if your new rate is at least 0.5 to 1 percentage point lower than your current rate, depending on how much time remains on your loan.
Who Qualifies and What Bank of America Looks At
Bank of America does not publish a minimum credit score for auto refinancing, but in practice they typically work with borrowers who have a credit score of 620 or higher. Borrowers with scores in the 620 to 660 range may receive higher rates than those with scores above 700. The bank also reviews your debt-to-income ratio, which is your total monthly debt payments divided by your gross monthly income — they generally prefer this to be below 50 percent.
The vehicle itself matters. Bank of America refinances cars that are at least 2 model years old and no older than 10 to 12 years old, depending on the vehicle's condition and mileage. The car must have fewer than 120,000 miles, though this limit can vary. You must own the vehicle outright or have equity in it — meaning the car's current market value must be higher than what you still owe on the loan. If you are underwater on your loan, Bank of America will not refinance.
You will need to provide proof of income (recent pay stubs or tax returns), proof of employment, and proof of insurance. The bank will also verify that you are current on your existing loan — if you are behind on payments, they will not refinance.
How to Start a Refinance Request with Bank of America
You can begin the process online through Bank of America's website, by calling their auto lending department at 1-800-731-2424, or by visiting a local branch. Online is usually fastest if you have your current loan documents and vehicle information ready. You will need your current loan number, the vehicle's VIN (Vehicle Identification Number), the current payoff amount, and your monthly payment amount.
During the initial conversation or online form, you will provide basic information about your income, employment, and the vehicle. Bank of America will then order a credit report and may request a vehicle inspection report or photos to verify the car's condition. Some refinances require an in-person appraisal; others do not, depending on the loan amount and the bank's assessment of risk.
Once Bank of America approves the refinance, they will provide you with a loan estimate that shows the new interest rate, the new monthly payment, the loan term, and the total interest you will pay over the life of the loan. You have the right to review this estimate before you agree to it. If you accept, you will sign loan documents, and the bank will pay off your existing loan directly to your current lender.
Timeline From Request to Funding
The entire refinance process typically takes three to seven business days from the moment you submit your process to the moment Bank of America funds the new loan and pays off your old one. The exact timeline depends on how quickly you provide requested documents and whether the bank needs additional information.
During this time, you continue making payments to your current lender as usual. Once Bank of America funds the new loan and pays off the old one, your current lender will send you a payoff confirmation, and your loan account with them will close. Your new monthly payment to Bank of America begins on the date specified in your loan documents, which is usually 30 days after the loan funds.
If you are concerned about timing — for example, if a payment is due soon to your current lender — tell Bank of America when you explore. They can sometimes coordinate the payoff to occur before your next payment is due.
Interest Rates and How Bank of America Sets Them
Bank of America does not publish a single refinance rate because the rate you receive depends on multiple factors specific to your situation. Your credit score is the largest factor — borrowers with scores above 740 typically receive the lowest rates, while those with scores between 620 and 680 receive higher rates. The age of the vehicle, the loan amount, the loan term you choose, and your debt-to-income ratio also affect the rate.
Current market conditions influence the range of rates the bank offers, but your individual rate is not determined by the market alone. Two borrowers explore on the same day may receive different rates if their credit scores or financial situations differ. To see what rate you might receive, you can request a quote online or by phone; this quote is based on a soft credit inquiry and does not affect your credit score.
Comparing Bank of America's rate to rates from other lenders — such as credit unions, online lenders, or other banks — is important before you commit. A difference of even 0.5 percentage points can save you hundreds of dollars over the life of the loan.
When Refinancing Makes Financial Sense
Refinancing is worth considering if Bank of America offers you a rate that is at least 0.5 to 1 percentage point lower than your current rate. The longer your remaining loan term, the more you save with a lower rate. For example, if you have 36 months left on your current loan and you refinance into a rate that is 1 percentage point lower, you might save $500 to $800 in interest, depending on the loan balance.
However, if you refinance and extend the loan term — say, from 36 months to 60 months — your monthly payment drops, but you pay interest for 24 additional months. This can erase the savings from a lower rate. Use Bank of America's loan calculator or ask them to show you the total interest you will pay under both your current loan and the refinanced loan so you can compare.
Refinancing also makes sense if your credit score has improved since you took out the original loan. If you had a lower score when you financed the car, your rate was higher than it would be today. A refinance can bring your rate in line with your current creditworthiness.
What Happens to Your Current Loan and Lender
When Bank of America approves your refinance, they pay your current lender the full payoff amount of your existing loan. Your current lender then closes your account and sends you a payoff confirmation letter. You do not need to contact your current lender or do anything on your end — Bank of America handles the payoff as part of the refinance process.
If your current loan has a prepayment penalty, you are responsible for paying it. Bank of America will not cover this fee. Some lenders charge a penalty if you pay off the loan early; others do not. Check your original loan documents or contact your current lender to find out whether a penalty applies. If it does, factor that cost into your decision about whether refinancing saves you money.
After the payoff is complete, your old loan is closed and no longer appears as an active account on your credit report, though the account history remains visible. Your new loan with Bank of America appears as a new account, which may temporarily lower your credit score because it is a new inquiry and a new account. Over time, as you make on-time payments, the impact on your score diminishes.
Frequently Asked Questions
Can I refinance a car loan I got from another bank with Bank of America?
Yes. Bank of America refinances cars financed through other lenders, credit unions, and dealerships. You do not need to be an existing Bank of America customer. The vehicle and your financial situation must still meet their requirements.
What if I still owe more than the car is worth?
Bank of America will not refinance if you are underwater on the loan. If you owe $15,000 but the car is worth $12,000, you have negative equity. Some lenders offer "upside-down" refinancing, but Bank of America does not. You would need to pay down the loan balance first or wait until the car's value rises.
Does refinancing hurt my credit score?
Refinancing causes a temporary dip in your credit score because Bank of America pulls your credit report (a hard inquiry) and opens a new loan account. The dip is usually 5 to 10 points and recovers within a few months as you make on-time payments on the new loan. The long-term benefit of a lower rate often outweighs this temporary impact.
What if Bank of America denies my refinance request?
If Bank of America denies your request, they will explain why — commonly because your credit score is too low, you are behind on your current loan, the vehicle is too old or has too many miles, or you have negative equity. You can reapply after improving your credit score or paying down the loan balance, or you can request quotes from other lenders.
Can I change my loan term when I refinance?
Yes. You can refinance into a shorter term (paying off the loan faster) or a longer term (lowering your monthly payment). A shorter term means higher monthly payments but less total interest. A longer term means lower monthly payments but more total interest. Bank of America will show you the payment and total interest for each term option before you decide.