What Bank of America vehicle refinance is and who it's for
Bank of America offers refinancing for car loans you already have with another lender. Refinancing means you take out a new loan from Bank of America to pay off your existing car loan, then you make monthly payments to Bank of America instead. People refinance when they want a lower interest rate, a different loan term, or to switch lenders for service reasons.
You can refinance a car you own outright or one you're still paying for. Bank of America will look at your credit score, income, and the car's value to decide whether to approve you and what interest rate to offer. The process typically takes a few days to a couple of weeks from process to funding.
Key Takeaways
- Bank of America refinances cars you already own or are paying for, replacing your current loan with a new one at a rate based on your credit and income.
- You'll need your current loan details, proof of income, and information about the vehicle to start the process.
- The new loan pays off your old lender directly, so you don't handle the payoff yourself.
- Interest rates and loan terms vary based on your credit profile and the vehicle's age and condition.
- You can start the process online, by phone, or at a Bank of America branch.
How to start a refinance with Bank of America
You can begin by visiting bankofamerica.com and looking for their auto refinance section, calling 1-800-333-6262, or visiting a local branch. Bank of America will ask for basic information: your name, the vehicle identification number (VIN) from your car's title or registration, the current loan balance, and your monthly payment amount.
Have your current car loan paperwork nearby when you contact them. You'll also need to provide recent pay stubs or tax returns to show your income. If you're self-employed, Bank of America typically asks for two years of tax returns. The lender will pull your credit report as part of the process.
What Bank of America looks at to decide
Bank of America uses your credit score as the primary factor in deciding whether to refinance your loan and what interest rate to offer. A higher credit score generally means a lower rate. They also consider your debt-to-income ratio—how much you owe each month compared to how much you earn—and whether you've made your current car payments on time.
The age and mileage of your vehicle matter too. Most lenders, including Bank of America, won't refinance cars older than 10 years or with very high mileage, though these limits can vary. The car's current market value is compared to what you still owe; if you owe significantly more than the car is worth, refinancing becomes harder or impossible.
Interest rates and loan terms available
Bank of America offers refinance loans with terms ranging from 24 to 84 months, though the exact options depend on your credit and the vehicle. Shorter terms (like 24 or 36 months) mean higher monthly payments but less interest paid overall. Longer terms (like 72 or 84 months) lower your monthly payment but cost more in total interest.
Interest rates are not published publicly; Bank of America calculates your rate based on your credit score, income, and the loan term you choose. Rates change daily and vary by borrower. You can get a rate estimate online or over the phone without affecting your credit score, though the final rate may differ slightly when you complete the full process.
What happens after you're approved
Once Bank of America approves your refinance, they'll send the loan funds directly to your current lender to pay off your old loan. You don't send money yourself or handle the payoff. This process usually takes 3 to 10 business days. During this time, you should continue making payments to your current lender as scheduled to avoid late fees.
After your old loan is paid off, you'll receive a confirmation from your original lender. Your car's title will eventually be transferred to Bank of America as the new lienholder (the lender with a legal claim on the car). You'll then make monthly payments to Bank of America according to your new loan agreement.
Reasons to refinance and reasons to wait
Refinancing makes sense if your credit score has improved since you took out your original loan, which could lower your rate. It also works if interest rates have dropped overall. Some people refinance to shorten their loan term and pay off the car faster, or to lower their monthly payment if they're facing financial strain.
Refinancing may not be worth it if you're close to paying off your current loan—the fees and time involved might cost more than you'd save. If your car is very old or has high mileage, you may not be approved. And if you're underwater on your loan (owing more than the car is worth), refinancing is unlikely to be an option.
Costs and fees to know about
Bank of America does not charge an origination fee or prepayment penalty for refinancing. However, some costs may explore depending on your state and situation. Your state may charge a title transfer fee or registration fee when the lender changes. If you need a new title document, your state's motor vehicle department will charge for that.
Some people choose to roll closing costs into the new loan, which means you pay them over time as part of your monthly payments. Others pay them upfront. Ask Bank of America for a complete list of costs before you commit, so you can compare the total cost of refinancing against the interest you'd save.
Frequently Asked Questions
Can I refinance a car I'm still paying for?
Yes. Bank of America refinances cars with existing loans. They pay off your current lender directly, and you then owe Bank of America instead. You'll need your current loan details and proof that you own the car (or have a lien on it).
How long does the refinance process take?
From process to funding typically takes 3 to 10 business days. The payoff to your old lender happens within that window. You should receive confirmation once your old loan is paid off and the new one is active.
What if my credit score is low?
Bank of America may still refinance you, but you'll likely receive a higher interest rate than someone with excellent credit. If your rate doesn't improve much, refinancing may not save you money. You can get a rate estimate to see what Bank of America would offer before committing.
Do I have to refinance with Bank of America if I bank there?
No. Being a Bank of America customer is not required to refinance with them, and refinancing with them doesn't require you to bank there. You can refinance your car loan with any lender that offers the product, whether or not you have other accounts with them.
What if my car is worth less than I owe?
This situation is called being underwater. Refinancing becomes very difficult or impossible because the lender's security (the car) is worth less than the loan. Some lenders have programs for this, but Bank of America's policies on underwater loans vary. Contact them directly to ask about your specific situation.