Bank of America does offer auto loan refinancing, but only for loans they already own
Bank of America will refinance an auto loan if you borrowed from them originally. They cannot refinance a car loan from another lender — if your current loan is with a different bank or credit union, you would need to contact that lender or look elsewhere. This matters because it narrows your options: you can only refinance with Bank of America if you're already their customer for that specific loan.
The basic process involves contacting Bank of America, providing information about your current loan, and letting them review whether refinancing makes financial sense for you. They'll look at your current interest rate, how much you still owe, and your credit situation now to determine whether a new rate would save you money.
Key Takeaways
- Bank of America refinances only auto loans they originally issued, not loans from other lenders.
- Refinancing can lower your monthly payment or shorten your loan term, depending on your new interest rate and the terms you choose.
- Your credit score at the time of refinancing affects the interest rate you receive, so a higher score than when you first borrowed may help.
- You can start by calling Bank of America's auto loan department or visiting a branch to discuss whether refinancing is available for your situation.
When refinancing makes sense for your situation
Refinancing works best when your credit score has improved since you took out the original loan, or when interest rates in the market have dropped. If either of those things is true, a new loan at a lower rate could reduce what you pay each month or let you pay off the car faster.
The math is straightforward: compare your current interest rate to what Bank of America would offer you now. If the new rate is lower, calculate how much you'd save over the remaining life of the loan, then subtract any fees Bank of America charges for refinancing. If the savings exceed the fees, refinancing is worth considering.
Refinancing also makes sense if you want to change your loan term — for example, if you currently have 60 months left and want to pay it off in 36 months instead. A shorter term means paying less interest overall, though your monthly payment will be higher.
How to start the refinancing conversation with Bank of America
The simplest first step is to call the phone number on the back of your loan statement or on your Bank of America account. Ask to speak with someone in the auto loan department about refinancing options. Have your loan number and current balance ready when you call.
You can also visit a Bank of America branch in person. Bring your loan documents or account information, and a banker can review your situation and explain what rates and terms might be available to you. Some branches can start the process on the spot, though final approval usually happens after a review of your credit.
Online, you may be able to see refinancing options through your Bank of America account if they're available to you, though this varies by region and loan type. Check your online banking portal or mobile app to see whether a refinancing option appears.
What Bank of America will review before offering a new rate
Bank of America will pull your current credit report and score. This is a hard inquiry, meaning it shows up on your credit report and can temporarily lower your score by a few points. They use this information to decide whether to refinance and what interest rate to offer.
They'll also look at how you've paid your current loan — whether you've made payments on time, whether you've had any late payments, and how much of the loan you've already paid off. A strong payment history with them works in your favor.
Your income and employment situation may come up, especially if you're refinancing for a significantly lower rate or a longer term. Be prepared to discuss your current job and income if asked.
Fees and costs you should ask about
Bank of America may charge a refinancing fee, though some lenders waive this fee to attract customers. Ask directly whether there's a fee to refinance and, if so, how much it is. This fee gets rolled into your new loan, so it affects your total cost.
You should also ask whether there are any prepayment penalties on your current loan. Some auto loans charge a fee if you pay them off early. If your current loan has this penalty, you need to know the amount before you decide whether refinancing saves you money overall.
Request a written estimate that shows your new interest rate, your new monthly payment, the total amount you'll pay over the life of the new loan, and any fees involved. This lets you compare the numbers clearly before you commit.
What happens if Bank of America says no
If Bank of America declines to refinance your loan, it's usually because your credit score has dropped since you borrowed, or because you've had payment problems on the current loan. In this case, refinancing with them isn't an option.
You still have other choices. Credit unions often refinance auto loans from other lenders and sometimes offer competitive rates, especially if you're a member. Online lenders and other banks also refinance existing auto loans. You would need to contact them separately and go through their process process.
If your credit has declined, you might also consider waiting a few months while you rebuild your score through on-time payments, then asking Bank of America again. A higher score could open up better rates.
The difference between refinancing and loan modification
Refinancing creates a brand-new loan that pays off your old one. You get a new interest rate, a new term, and a new monthly payment. The old loan disappears.
A loan modification, by contrast, changes the terms of your existing loan without creating a new one. Not all lenders offer modifications, and Bank of America's policies on this vary. If you're struggling to make your current payment, ask whether modification is an option before pursuing refinancing.
Frequently Asked Questions
Will refinancing hurt my credit score?
The hard inquiry Bank of America runs will lower your score slightly, usually by a few points, for a few months. However, if refinancing lets you pay off debt faster or reduces your overall debt load, that can help your score recover and improve over time. The temporary dip is generally worth it if the refinancing saves you money.
Can I refinance if I'm behind on payments?
Bank of America is unlikely to refinance a loan you're currently behind on. They want to see a clean payment history. If you're struggling, contact them about a modification or payment plan before asking about refinancing.
How long does the refinancing process take?
From initial contact to funding usually takes one to two weeks, though it can be faster if you're approved quickly and all documents are in order. Some of that time is spent waiting for the new loan to be processed and for the old loan to be paid off.
What if I still owe more than the car is worth?
You can still refinance even if you're underwater on the loan — meaning you owe more than the car's current value. Bank of America will refinance the full amount you owe, though your interest rate may be higher than if you had equity in the car.
Do I need to bring the car in for refinancing?
No. Refinancing is a paperwork transaction between you and the bank. The car stays with you throughout the process. Bank of America already has the title and lien information from your original loan.