Bank of America's car loan refinancing process and what it costs
Bank of America refinances car loans through its auto lending division, but the process differs depending on whether you already bank there. If you're a Bank of America customer with an existing auto loan elsewhere, you can start by calling 1-800-333-0024 or visiting your local branch. If you don't bank there, you'll need to open a checking account first — Bank of America requires this before refinancing. The bank does not refinance vehicles older than 10 model years or with more than 120,000 miles, and the loan amount must be at least $7,500.
Bank of America's refinance rates vary based on your credit score, the age and mileage of your vehicle, and current market conditions. The bank publishes a range but not a fixed rate — you'll receive a specific offer only after submitting your process and allowing them to pull your credit report. There is no process fee, but you will pay closing costs similar to your original loan: title transfer, registration, and possibly a documentation fee that varies by state. These typically run $100 to $300 total.
Key Takeaways
- Bank of America requires you to be a customer with a checking account before they will refinance your car loan, which adds a step if you don't already bank there.
- The bank will not refinance vehicles older than 10 model years, with more than 120,000 miles, or with a loan amount under $7,500.
- Your rate depends on your credit score and the vehicle's age and mileage, and you'll only see your actual offer after Bank of America pulls your credit report.
- Closing costs for a Bank of America auto refinance typically range from $100 to $300 and cover title transfer, registration, and documentation fees.
What documents you'll need to bring
Bank of America will ask for your current loan documents, proof of insurance, and the vehicle's title. Bring your most recent loan statement from your current lender — this shows the remaining balance, interest rate, and monthly payment. You'll also need proof of current auto insurance; Bank of America requires full coverage (comprehensive and collision) on any vehicle they refinance, and they want to see that it's already in place.
The vehicle's title must be in your name. If the title is held by your current lender (which is common), Bank of America will request it directly from that lender as part of the refinance process, so you don't need to retrieve it yourself. Bring a government-issued ID and proof of residency — a recent utility bill or lease agreement works. If you've recently moved, bring documentation showing your current address.
How Bank of America's rates compare to other lenders
Bank of America's refinance rates are competitive but not always the lowest available. The bank typically offers rates in the 4% to 8% range for borrowers with good credit, though this varies significantly by individual circumstances. Credit unions and online lenders like LightStream, SoFi, and Upgrade often advertise lower starting rates, sometimes in the 3% to 6% range, but those rates are reserved for borrowers with excellent credit (typically 750+). Regional banks and other national banks like Wells Fargo and Chase offer similar rate ranges to Bank of America.
The real comparison isn't just the interest rate — it's the total cost over the life of the loan. A lower rate from another lender might be offset by higher closing costs or a longer loan term. Bank of America's advantage is that if you're already a customer, the process is faster because they already have your banking history and can verify your income quickly. If you're not a customer, the requirement to open an account first adds time and complexity that other lenders don't impose.
How the refinance timeline works
The entire process typically takes 7 to 14 days from process to funding. Your first step is submitting an process, either online, by phone, or in person at a branch. Bank of America will pull your credit report when ready and give you a preliminary rate quote within one business day. This is a soft inquiry if you're just shopping, but once you formally explore, it becomes a hard inquiry that temporarily lowers your credit score by a few points.
After you accept the offer, Bank of America orders a title search and requests your current loan documents from your existing lender. This takes 3 to 5 business days. Once they receive everything, they'll prepare closing documents for you to sign. You can sign electronically or in person at a branch. After signing, Bank of America pays off your old loan and funds the new one — this happens within 2 to 3 business days. Your old lender will release the title to Bank of America, which then sends it to you or holds it depending on your state's requirements.
When a Bank of America refinance makes financial sense
Refinancing through Bank of America makes sense if your new rate is at least 0.5% to 1% lower than your current rate and you plan to keep the car for at least two more years. Run the math: multiply your monthly payment savings by the number of months remaining on the new loan, then subtract the closing costs. If the result is positive and substantial, refinancing is worth it. For example, if you save $50 per month and have 36 months left on the loan, you save $1,800 minus $200 in closing costs, for a net savings of $1,600.
Refinancing also makes sense if you need to lower your monthly payment because your financial situation has changed. Bank of America can extend your loan term to reduce the payment, though this means paying more interest overall. It's a trade-off: lower monthly payment now versus higher total interest paid. Refinancing does not make sense if you're planning to sell or trade in the car within the next year, because the closing costs won't be recovered by the interest savings.
Alternatives if Bank of America isn't the right fit
If you don't want to open a Bank of America checking account, or if the bank's rate isn't competitive for your situation, other lenders offer auto refinancing without that requirement. Credit unions typically offer lower rates to members, so if you belong to one, check there first. Online lenders like LightStream (owned by Truist Bank), SoFi, and Upgrade allow you to explore entirely online and fund within 2 to 5 business days. Traditional banks like Wells Fargo, Chase, and US Bank also refinance auto loans and may have better rates depending on your credit profile.
If your credit score is below 620, refinancing options are limited across all lenders. In that case, focus on improving your credit score before explore — paying down other debts and making on-time payments for 6 to 12 months can raise your score enough to may have access to for better rates. Some credit unions have programs for borrowers with lower credit scores, so that's worth exploring if you're in this situation.
Frequently Asked Questions
Can I refinance a car loan I have with Bank of America through Bank of America?
Yes. If you already have an auto loan with Bank of America, you can refinance it with them to get a lower rate or change the loan term. Call 1-800-333-0024 to discuss your options. The process is faster because they already have your loan file and credit history on record.
What happens to my old loan when Bank of America pays it off?
Bank of America sends the payoff amount directly to your old lender, and that lender closes the account. Your old lender then releases the vehicle title to Bank of America. You don't need to contact your old lender — Bank of America handles this as part of the refinance process.
Will refinancing hurt my credit score?
The hard inquiry Bank of America pulls will lower your score by a few points temporarily, usually 5 to 10 points. This recovers within 3 to 6 months. Refinancing also closes one loan and opens another, which can affect your credit mix, but the overall impact is minor if you're refinancing to a better rate.
Can I refinance if I'm upside down on my current loan?
Being upside down means you owe more than the car is worth. Bank of America will refinance this amount, but you'll need to cover the difference out of pocket or roll it into the new loan. Rolling it in means paying interest on the negative equity, which costs more overall. Ask Bank of America about your options when you explore.
How often can I refinance my car loan?
There's no legal limit to how often you can refinance, but lenders typically want to see that you've made at least 6 to 12 months of payments on your current loan before refinancing again. Refinancing too frequently can damage your credit and make lenders view you as higher risk.