Many Americans turn to Bank of America, the largest bank in the U.S., when they need to refinance car loans. Most people refinance loans to lower their interest rates, but some extract cash from vehicles they own free and clear, through cash-out refinance loans. The refinance process at Bank of America normally takes one business day, which enables borrowers to have fast access to funds.
Instructions
1. Go to bankofamerica.com. On the homepage under Borrow, select Auto loans. Near the bottom of the auto loan screen, select auto loan eligibility requirements. A pop-up box appears containing general underwriting guidelines for auto loans. Review the guidelines to ensure your vehicle meets the eligibility requirements. Bank of America, like many banks, does not lend against vehicles more than seven years old. Loan amounts range between $7,500 and $100,000, so if your car falls within the guidelines, you can apply for a refinance loan.
2. On the Auto loan screen, select Apply Now. Complete the application, entering your name, address, date of birth, driver's license number, Social Security number and other information. You must enter your annual before-tax income. If you are self-employed, enter your previous year's gross income. Bank of America uses a computer-based underwriting system to make preliminary approvals and most people receive a response within 60 seconds. The bank forwards applications for marginal applicants to underwriters who make the decision. Whether approved or denied, you will receive a phone call within one business day. If you are declined, the bank will also send a letter detailing the reasons why.
3. Provide the loan officer with information about your vehicle, including the Vehicle Identification Number, mileage, year, make, model and the amount you owe on your current loan. The loan officer researches the current value of your vehicle and determines its eligibility. If your current loan exceeds the value of the car, you cannot refinance. The loan officer provides you with a range of interest rates and term options. The longer the term, the higher the rate. Agree upon a loan term. The loan officer sends you a loan closing package via overnight delivery or via email.
4. Send the loan officer documents to support your application, including your last two pay slips and a payoff quote from your current lender. Sign the loan papers and send the package back to the loan officer. Bank of America will electronically pay off your current lender and send any funds to you via direct deposit or check. The funding process normally takes 24 hours.
Tips Warnings
Nonprofit credit unions usually offer lower rates than major banks for car refinance loans. The credit unions have lower operating costs and most prefer to write small loans rather than home loans.
Interest rates on refinances are higher than interest rates on vehicle purchases. Many people believe they can take advantage of falling interest rates to refinance cars at lower rates, but because cars are depreciating collateral, the rates for refinances are always higher than purchase loans.
Tags: refinance, your, bank, america, Bank America, loan officer, refinance loans, your current, your vehicle, auto loan, credit unions, current lender
