Bank America Mortgage

Bank of America is the largest bank holding company in the United States. Clients of Bank of America come from 150 countries. 99% of all large U.S. corporations deal with them in some form. Since 2008, when they acquired Merrill Lynch, they have also been the largest personal financial group in the country. It is estimated that of all deposits made in the U.S., over 12% are to the Bank of America. The consumer division of the bank is the largest, with 90% of its revenue coming from savings, credit cards, and consumer loans. Some of the most popular loans issued are Bank of America Mortgages. Mortgages from Bank of America are available for a range of financial and living situations. They also offer consumer assistance on which loan is best for a particular person or family. Bank of America mortgages are split into three distinct categories: fixed-rate, adjustable-rate, and government loans.

Bank of America Fixed-Rate Mortgages
These mortgages are perfect for those who believe the current interest rate is at a low and will rise in the next 10-30 years. A fixed-rate mortgage is typically best for people who plan to stay in their homes for most of their lives. Payment schedules are generally the most stable with fixed-rate Bank of America mortgages. Types of fixed-rate mortgages include the following:

• 30-year fixed-rate – This is the most popular type of home loan. The advantages are low monthly payments on a stable schedule. The disadvantages are that it has the highest interest rates and the total payments will be higher because of the longer term.

• 20-year fixed-rate – With a 20-year fixed-rate mortgage, payments are higher, but the buyer builds equity faster and the home is paid off in a shorter length of time. Interest rates are also lower than for 30-year loans.

• 15-year fixed-rate – This loan has the lowest interest of fixed-rate mortgages, but monthly payments are high.

• Others – Other, less popular types of fixed-rate mortgages by Bank of America are for 10-year, 25-year, and 40-year terms. Interest-only loans are also available on a fixed-rate. For higher-price homes, fixed-rate jumbo loans are offered, as well.

Bank of America Adjustable-Rate Mortgages
These mortgages offer a low initial interest rate that grows over time to an indexed rate. In this type of loan, initial monthly payments are extremely low, but they will go up after the initial period has expired. Even after the initial period, the interest rate remains adjustable according to the market. It may go down, but it may go up even further years down the road. This type of mortgage is best for those who plan to move before the initial rate expires or for those who expect their income to increase in the future so that payments can be made. The types of Adjustable-rate mortgages from Bank of America are as follows:

• 10/1 ARM – The interest rate is fixed for the first 10 years, then can be adjusted each year after.
• 7/1 ARM – The interest rate is fixed for the first 7 years.
• 5/1 ARM – Interest is fixed for the first 5 years.
• 3/1 ARM – Interest is fixed for only 3 years.
• 1-year ARM – Interest is fixed only in the first year.

Government Loan Bank of America Mortgages
Government home loans come mostly from the Federal Housing Administration (FHA) but may also come from other departments such as Veterans Affairs. These loans are generally applied for through existing lenders. First-time homebuyers qualify for the FHA loans that offer them low down-payments, low-cost insurance, and low interest rates.