Bank of America (NYSE: BAC), which is based in North Carolina, is one of the Big Four Banks of the United States. As such, it is a major provider of financial and banking services in the country. The bank released its latest home purchase and refinance mortgage rates and reported some changes in discount points.
The 30-year fixed rate home purchase loan can be secured at 3.5% interest for 1.125 discount points, lower than yesterday’s 1.25 in discount points. This particular loan bears an APR (annual percentage rate) of 3.657%, down from the previous 3.667% APR. Meanwhile, the shorter-term and more affordable 15-year fixed rate home purchase loan bears a mortgage rate of 2.75% and 0.5 discount points, reduced from the previous 0.625 discount points, translating to an overall APR of 2.937%.
For home refinancing, the 30-year fixed rate mortgage is offered at a rate of 3.625% and 1.375 discount points, up from the previous 1.25 discount points. This equates to an APR of 3.804%, which is higher than yesterday’s 3.794% APR. The more popular 15-year fixed rate home refinance loan is quoted at an interest rate of 2.875% and 1.25 discount points, amounting to an APR of 3.173%, which is unchanged from yesterday.
Bank of America offers flexible home loan options, such as the ARM (adjustable rate mortgage) loans. With these loans, the interest rate is fixed for a number of years then is adjusted according to market rates at the time of the reset.
The 5/1 ARM home purchase loan comes with a rate of 2% and 0.875 discount points, translating to an APR of 2.789%. The 7/1 ARM home purchase loan bears an interest rate of 2.5% and 0.625 discount points, amounting to an equivalent APR of 2.884%, which is also unchanged from yesterday’s quotes. The 5/1 ARM loan for home refinancing is offered at 2.375% interest and 0.875 discount points, for an APR of 2.917%, while the 7/1 ARM home refinance loan carries a mortgage rate of 2.5% and 1.25 discount points. This translates to an APR of 2.932%, same as yesterday’s rate.