Bank of America auto refinance lets you replace an existing car loan with a new one, usually to lower your interest rate or change your loan term

Bank of America offers auto refinancing through its consumer lending division, which means you can refinance a car loan you have with any lender — not just Bank of America. The process involves explore for a new loan with Bank of America, using the funds to pay off your current lender, and then making payments to Bank of America instead. The main reason people refinance is to get a lower interest rate, which reduces your monthly payment or the total interest you pay over the life of the loan.

Bank of America refinancing is available to existing Bank of America customers and to people who are not yet customers. The bank handles the payoff of your old loan directly, so you do not have to manage that step yourself. However, the interest rate you receive depends on your credit score, income, employment history, and the age and condition of the vehicle — not everyone will may have access to for a lower rate than what they currently have.

Key Takeaways

  • Bank of America refinances car loans from any lender, and the bank pays off your old loan directly as part of the process.
  • Your new interest rate depends on your credit score and financial situation, so refinancing only makes sense if the new rate is lower than your current one.
  • The vehicle must be at least two model years old and worth enough to find the loan, which Bank of America determines through an appraisal or market value check.
  • You can change your loan term when you refinance, which affects both your monthly payment and total interest paid.
  • Bank of America charges no process fee for auto refinancing, but you may owe a payoff penalty to your current lender depending on your original loan agreement.

What Bank of America needs from you to refinance

To start a refinance with Bank of America, you will need your current loan information, proof of income, and details about the vehicle. Specifically, have your current loan account number and the name of your current lender ready. Bank of America will ask for recent pay stubs or tax returns to verify your income, and they will need your driver's license and Social Security number for the credit check.

You will also need the vehicle's identification number (VIN), current mileage, and the payoff amount from your current lender. Bank of America uses this information to determine the car's value and whether the loan-to-value ratio is acceptable. Most lenders, including Bank of America, will not refinance a vehicle that is worth significantly less than what you owe on it, because that creates too much risk for the bank.

If you are not yet a Bank of America customer, you will need to provide an address and phone number, and the bank will verify your identity during the process process. Existing Bank of America customers can often move faster because the bank already has some of this information on file.

Vehicle age and condition requirements

Bank of America will only refinance vehicles that are at least two model years old. This means if you bought a car in 2024, you cannot refinance it with Bank of America until 2026. The bank has this rule because newer cars depreciate quickly, and the bank needs to be confident the vehicle is worth at least what you owe on it.

The vehicle must also be in reasonable condition and have a clear title. If the car has been in a major accident, has significant mechanical problems, or has a salvage or rebuilt title, Bank of America may decline the refinance. The bank does not require an inspection, but they do verify the vehicle's history and value using the VIN.

There is no upper age limit stated by Bank of America, but very old vehicles may be harder to refinance because their value drops below the loan amount. If your car is more than 10 or 15 years old, you may want to call Bank of America directly to ask whether they will consider it before you formally explore.

How interest rates and monthly payments change

The interest rate Bank of America offers you depends on several factors: your credit score, your debt-to-income ratio, the age of the vehicle, and current market rates. If your credit score has improved since you took out your original loan, or if market interest rates have fallen, you may may have access to for a lower rate. A lower rate means a lower monthly payment if you keep the same loan term, or the same payment with a shorter term.

You can also change your loan term when you refinance. If you currently have a 72-month loan, you could refinance into a 60-month loan to pay off the car faster and pay less total interest. Or you could refinance into a longer term to lower your monthly payment, though this means paying more interest overall. Bank of America offers terms ranging from 24 to 84 months, depending on the vehicle and your situation.

Before you refinance, calculate whether the savings are worth the effort. If you are only saving $20 per month but have already paid three years of your original loan, the refinance may not be worth it. Use Bank of America's online calculator or call their auto lending team to see what rate and payment you would receive.

Payoff penalties and timing

Some car loans include a prepayment penalty, which means your current lender charges you a fee if you pay off the loan early. This fee is not charged by Bank of America — it comes from your current lender. Before you refinance, contact your current lender and ask whether your loan has a prepayment penalty and how much it would be. This cost should be factored into whether refinancing makes financial sense.

Bank of America does not charge an process fee or origination fee for auto refinancing. However, you may owe other costs depending on your state and situation. Some states require a title transfer fee, and if you are financing the full payoff amount, that cost gets rolled into your new loan. Ask Bank of America to provide a loan estimate that shows all costs before you commit.

The refinance process typically takes 7 to 10 business days from process to funding. During this time, Bank of America will order a vehicle valuation, verify your employment, and pull your credit report. You will continue making payments to your current lender until Bank of America's funds are sent to them. After that, your old loan is closed and you begin making payments to Bank of America.

How to start the refinance process with Bank of America

You can begin a Bank of America auto refinance online, by phone, or in person at a Bank of America branch. The online option is usually fastest — go to bankofamerica.com, navigate to the auto lending section, and select "Refinance." You will answer questions about your current loan, income, and vehicle, and Bank of America will give you a rate estimate within minutes. This estimate is not a commitment; it is based on the information you provide and subject to verification.

If you prefer to speak with someone, call Bank of America's auto lending team at 1-800-499-7000. They can walk you through the process, answer questions about your specific situation, and submit your process over the phone. Existing Bank of America customers can also visit a local branch, though branch staff may direct you to complete the process online or by phone for faster processing.

After you submit your process, Bank of America will contact you to verify information and order the vehicle valuation. You will receive a formal loan offer that shows your interest rate, monthly payment, loan term, and all costs. You have the right to review this offer before you accept it. Once you sign, Bank of America will contact your current lender to arrange the payoff and fund the new loan.

When Bank of America refinancing may not be the right choice

Refinancing does not make sense if your credit score has not improved and interest rates have not fallen since you took out your original loan. If Bank of America's rate is higher than what you currently have, decline the offer. You are never obligated to accept a rate just because you applied.

Refinancing is also a poor choice if you are underwater on your loan — meaning you owe more than the car is worth. Bank of America will not refinance in this situation, and even if another lender would, you would be taking on additional risk. If you are close to paying off your current loan, the savings from a lower rate may not justify the time and paperwork involved.

Finally, if you are planning to sell or trade in the car within the next year or two, refinancing may not pay for itself. The longer you keep the car, the more time you have to benefit from a lower interest rate. If you are uncertain whether refinancing makes sense for your situation, Bank of America's rate estimate is free and does not affect your credit score, so you can explore your options without committing.

Frequently Asked Questions

Will refinancing with Bank of America hurt my credit score?

Bank of America will pull your credit report as part of the process, which causes a hard inquiry and may lower your score by a few points temporarily. However, if you are shopping for rates from multiple lenders within a short window (typically 14 to 45 days), the inquiries usually count as a single inquiry for credit scoring purposes. Your score will recover within a few months as you make on-time payments to Bank of America.

Can I refinance if I still owe money on my current loan?

Yes, that is the whole point of refinancing. Bank of America pays off your current loan in full and gives you a new loan for the remaining balance. You do not need to have paid off your original loan first. However, if you owe significantly more than the car is worth, Bank of America will likely decline.

What happens if my current lender has a prepayment penalty?

You will owe the penalty to your current lender, not to Bank of America. The penalty amount should be included in the payoff quote your current lender provides. You can ask Bank of America to roll this cost into your new loan, which means you will pay interest on it, or you can pay it separately. Either way, factor this cost into your decision about whether refinancing saves you money.

How long does the refinance process take?

From process to funding usually takes 7 to 10 business days. The longest part is waiting for the vehicle valuation and employment verification. You will continue making payments to your current lender during this time. Once Bank of America funds the new loan and pays off your old one, you will receive instructions for making your first payment to Bank of America.

Can I refinance with Bank of America if I am not a customer?

Yes, Bank of America refinances auto loans for non-customers. However, existing customers may have access to slightly better rates or faster processing. You will need to provide more documentation to verify your identity and financial situation if you do not already have a Bank of America account.