What Bank of America auto refinancing is and how it works

Bank of America offers auto refinancing through its consumer lending division, which means you can replace your existing car loan with a new one from BofA, potentially at a different interest rate or with different terms. The process is straightforward: you contact BofA, provide information about your current loan and vehicle, and if approved, BofA pays off your old lender and becomes your new lender. You then make monthly payments to Bank of America instead of your original lender.

The main reason people refinance is to lower their interest rate, which reduces the total amount you pay over the life of the loan. A lower rate means smaller monthly payments or the same payment spread over fewer months. BofA also allows you to change the loan term—you might refinance a 72-month loan into a 60-month loan to pay it off faster, or extend it to lower your monthly payment if you need breathing room in your budget.

Bank of America refinancing is available to existing BofA customers and non-customers alike, though existing customers may see faster processing. You can start the process online, by phone, or in person at a branch. The bank will pull your credit report and verify your vehicle information before giving you a rate quote.

Key Takeaways

  • Bank of America refinancing replaces your current auto loan with a new one, potentially lowering your interest rate or changing your monthly payment and loan term.
  • Your credit score, the age and mileage of your vehicle, and how much you still owe on your current loan all affect the interest rate BofA will offer you.
  • The refinancing process typically takes one to two weeks from process to funding, though it can be faster for existing BofA customers.
  • You can refinance with BofA even if you financed your car through a different lender, but you cannot refinance a loan you already have with Bank of America through the same bank.
  • Refinancing makes financial sense only if the new interest rate is meaningfully lower than your current rate, because closing costs and the time value of money can offset small savings.

Interest rates and what affects the rate you receive

Bank of America does not publish a single advertised rate for auto refinancing. Instead, the rate you receive depends on your individual financial profile. The strongest factor is your credit score—borrowers with scores above 750 typically receive the lowest rates, while those below 650 may not be approved at all or may receive rates only slightly better than their current loan.

Your vehicle's age and mileage also matter. BofA generally refinances vehicles that are no more than 10 years old and have fewer than 100,000 miles, though these limits can vary. Newer vehicles with lower mileage may have access to for better rates because they hold their value and are less likely to need expensive repairs during the loan term. A 2015 sedan with 80,000 miles will receive a different rate than a 2010 sedan with 150,000 miles.

The loan-to-value ratio—how much you owe compared to what the car is worth—also influences your rate. If you owe $15,000 on a car worth $20,000, you are in a stronger position than if you owe $18,000 on the same car. The larger the gap between what you owe and what the car is worth, the lower your risk to the lender, and the better your rate.

Finally, current market conditions and BofA's own lending standards shift over time. Rates available today may not be available next month. You can request a rate quote without a hard credit pull first—this is a soft inquiry and does not affect your credit score—to see what range you might may have access to for before committing to a full process.

How to get a quote and what documents you will need

To get a rate quote from Bank of America, you have three options: visit a local branch, call 1-800-333-6262 (the BofA auto lending phone line), or start online through the Bank of America website. If you start online, you will enter basic information about yourself, your current loan, and your vehicle. BofA will ask for your driver's license number, the vehicle identification number (VIN), and details about your current loan—the lender's name, your current interest rate, and your remaining balance.

For a soft quote, you typically need only this information. If you move forward to a full process, BofA will order a credit report and may ask for additional documents: a recent pay stub or tax return to verify income, proof of insurance, and the current loan statement from your existing lender. Some applicants are asked to provide a photo of their vehicle's odometer to confirm mileage.

The entire process from quote to funding usually takes 7 to 14 days. Existing Bank of America customers may see faster processing because the bank already has their financial information on file. Once approved, BofA will contact your current lender, pay off the balance, and send you new loan documents and a payment schedule. You will receive a payoff letter from your old lender confirming the loan is closed.

When refinancing saves you money and when it does not

Refinancing makes sense when the interest rate you receive is at least 0.5 to 1 percentage point lower than your current rate. If you currently pay 6% and BofA offers 5%, that is a meaningful difference. If you currently pay 6% and BofA offers 5.8%, the savings are small enough that closing costs and the time spent on the process may not be worth it.

To calculate whether refinancing is worth your time, you need to know how much you will save per month and how long it will take to break even on any closing costs. Bank of America typically charges no origination fee or closing costs for auto refinancing, which removes a major barrier that exists with other lenders. This is a significant advantage—it means you start saving when ready if your new rate is lower.

However, refinancing does not make sense if you are near the end of your current loan. If you have only 12 months of payments left on your current loan, refinancing into a new 60-month loan will extend your debt and cost you more in total interest, even if the rate is lower. The math only works in your favor if you have enough time remaining on your loan to benefit from the lower rate.

You should also consider whether you plan to keep the car. If you are thinking about selling or trading it in within the next year or two, refinancing may not be worth the paperwork. The savings need time to accumulate.

How refinancing affects your credit and what happens to your old loan

When you explore for refinancing, Bank of America will perform a hard credit inquiry, which temporarily lowers your credit score by a few points—usually 5 to 10 points. This dip is normal and recovers within a few months. Multiple applications within a short window (typically 14 to 45 days, depending on the credit bureau) count as a single inquiry, so if you are shopping around with other lenders, do it quickly.

Once BofA approves your refinance, the new loan is reported to the credit bureaus as a new account. This can temporarily lower your score because it reduces your average account age and increases your total available credit. At the same time, your old loan is paid off and closed, which removes a monthly payment from your credit report. Over time—usually within a few months—your score typically recovers and may even improve because you now have a lower interest rate and a cleaner payment history.

Your old loan does not disappear; it is straightforward paid off. The original lender sends you a payoff letter confirming the account is closed with a zero balance. You will no longer make payments to that lender. Make sure you receive this letter and keep it for your records. If you financed through a dealership's captive finance company (like Ford Credit or GM Financial), that account will close. If you financed through a bank or credit union, the same process applies.

Bank of America refinancing versus other lenders

Bank of America is one of several large national lenders offering auto refinancing, alongside Wells Fargo, US Bank, and LendingClub. Smaller credit unions and online lenders like SoFi and Lightstream also compete in this space. The main advantage of BofA is convenience if you are already a customer—you can walk into a branch or call a familiar number. The lack of closing costs is also a genuine benefit.

The disadvantage is that BofA's rates are not always the most competitive, particularly for borrowers with excellent credit. Online lenders and credit unions sometimes offer lower rates to well-may have access to borrowers because they have lower overhead costs. If your credit score is above 750 and you have a newer vehicle, it is worth getting quotes from at least one or two other lenders to compare. The difference between a 4.5% rate and a 5% rate on a $20,000 loan over five years is roughly $500 in total interest.

If your credit is fair or your vehicle is older, BofA's willingness to work with a broader range of borrowers and its streamlined process may be more valuable than chasing a slightly lower rate elsewhere. You should also consider whether you value the ability to manage your loan through an existing bank account and online banking platform.

Common reasons refinancing is denied or delayed

Bank of America may deny a refinancing request if your credit score is too low, typically below 620. If you have recent late payments, collections accounts, or a very high debt-to-income ratio, you may not be approved. The bank may also decline if your vehicle is too old, has too many miles, or is worth significantly less than what you owe on it (being "upside down" on the loan).

Refinancing can be delayed if you do not provide required documents promptly, if there is a discrepancy between what you reported and what the bank discovers during verification, or if your current lender is slow to provide payoff information. Some lenders take longer than others to release loan documents, which can add days to the process.

If you are denied, ask BofA for the specific reason. If it is a credit score issue, you may be able to reapply after several months of on-time payments. If it is a vehicle issue, refinancing may not be possible until the vehicle is newer or has fewer miles. If you are upside down on your loan, you may need to pay down the principal before refinancing becomes an option.

Frequently Asked Questions

Can I refinance a Bank of America auto loan with Bank of America?

No. You cannot refinance a loan you already have with the same lender. Refinancing requires paying off one lender and taking out a new loan with a different lender. If you have a BofA auto loan and want to refinance, you will need to use a different bank, credit union, or lender.

How long does the refinancing process take from start to finish?

The typical timeline is 7 to 14 days from process to funding. Existing Bank of America customers may see faster processing. The speed depends on how quickly you provide required documents and how quickly your current lender releases payoff information. Some lenders are slower than others.

What if I still owe more than my car is worth?

Being upside down on your loan makes refinancing difficult but not always impossible. Bank of America may refinance if you have a strong credit score and a stable income, but you may not receive as favorable a rate. Some lenders will not refinance at all in this situation. Contact BofA directly to discuss your specific circumstances.

Will refinancing hurt my credit score?

Refinancing will temporarily lower your credit score by a few points due to the hard credit inquiry and the new account. This dip is normal and typically recovers within a few months. Over time, your score may improve because you will have a lower interest rate and a cleaner payment history.

What happens if I want to pay off my refinanced loan early?

Bank of America does not charge prepayment penalties on auto loans, so you can pay off your refinanced loan early without extra fees. Paying early saves you interest and gets you out of debt faster. Contact BofA to confirm there are no penalties before you make extra payments.