Bank of America does offer auto loan refinancing, but only for loans you already have with them

Bank of America will refinance an existing auto loan if you borrowed from them originally. They do not refinance cars financed through other lenders. If your Bank of America auto loan is at least 12 months old, you can contact them to explore a new rate and term. The process is faster than an original loan application because they already have your credit history and vehicle information on file.

Refinancing means taking out a new loan to pay off your existing one. Your new rate depends on your current credit score, income, and how much you still owe on the car. If your credit has improved since you first borrowed, or if interest rates have dropped, refinancing might lower your monthly payment or shorten the loan term.

Key Takeaways

  • Bank of America refinances only auto loans they originated; you cannot refinance a car loan from another lender through them.
  • Your loan must be at least 12 months old before Bank of America will consider a refinance request.
  • Your new rate is based on your current credit score and income, not the rate you received originally.
  • You can refinance to lower your monthly payment, reduce the total interest paid, or change the loan term.

How to start a refinance with Bank of America

Contact Bank of America directly through their website, mobile app, or by calling 1-800-432-1000. Tell them you want to refinance your auto loan. They will pull your current loan details and run a soft credit check to give you an estimate. A soft check does not affect your credit score.

If you move forward, Bank of America will order a hard credit inquiry, which does show on your credit report. They will also verify the vehicle's current value and condition. The whole process typically takes 3 to 5 business days from application to closing. You will receive new loan documents to sign, either online or at a branch.

Bring your driver's license and proof of insurance. Some branches may ask for the vehicle title or registration, though Bank of America usually has this on file already. If you have made recent payments, make sure those are posted before you apply, as it can affect your approval odds.

When refinancing makes financial sense

Refinancing saves money if your new interest rate is lower than your current one. Even a 1% drop can reduce your monthly payment by $15 to $30 on a typical car loan. Use Bank of America's refinance calculator on their website to see your estimated new payment before you commit.

Refinancing also makes sense if you want to shorten your loan term. If you originally borrowed for 72 months but can now afford a 48-month payment, refinancing lets you pay off the car faster and pay less total interest. However, shortening the term raises your monthly payment, so make sure the new amount fits your budget.

Do not refinance if you are underwater on the loan—meaning you owe more than the car is worth. Bank of America will not refinance a loan where the amount owed exceeds the vehicle's value. If you are close to being underwater, wait until you have paid down more of the principal.

Costs and fees to expect

Bank of America does not charge an origination fee or prepayment penalty for auto loan refinancing. However, you may owe a title transfer fee to your state's DMV, which varies by location. Some states charge $10 to $50 for a title transfer; others charge nothing. Check your state's DMV website for the exact amount.

If you refinance with a longer term to lower your payment, you will pay more total interest over the life of the loan, even if the rate is lower. For example, extending a 48-month loan to 60 months reduces your monthly payment but adds months of interest charges. Use the calculator to see the total cost before deciding.

What happens to your old loan

When your new Bank of America loan closes, the funds go directly to pay off your old loan in full. You do not receive a check or have to make a separate payment. The old loan account closes, and you now have one new loan account with new monthly payments and a new due date.

Your old loan servicer (which is Bank of America) will send you a final statement showing the loan paid in full. Keep this for your records. Your new loan documents will show the new rate, term, and monthly payment. Set up automatic payments or calendar reminders so you do not miss the new due date.

Alternatives if Bank of America will not refinance

If your Bank of America loan is less than 12 months old, or if you do not meet their credit or income requirements, you can refinance through another lender. Credit unions, online lenders, and traditional banks all offer auto refinancing for loans from any source. You will need to provide proof of income, your current loan documents, and vehicle information.

Refinancing through a different lender takes longer—usually 7 to 10 business days—because they have to verify everything from scratch. However, you may find a better rate or more flexible terms elsewhere. Compare at least three offers before choosing, and always check the total cost of the loan, not just the monthly payment.

If your credit score has dropped since you first borrowed, or if you have missed payments, refinancing may not be an option with any lender. In that case, focus on making on-time payments for the next 6 to 12 months, then revisit refinancing once your credit improves.

Frequently Asked Questions

Can I refinance a Bank of America auto loan if I have missed a payment?

Bank of America will usually not refinance if you have a recent missed or late payment on your record. Wait until you have made at least 6 to 12 consecutive on-time payments after the missed payment, then apply. Your credit score will recover during that time, and your approval odds will improve.

How long does Bank of America refinancing take from start to finish?

The process typically takes 3 to 5 business days once you submit your application. This includes the credit check, vehicle verification, and document signing. If you apply online, you may receive approval within 24 hours, but closing still takes a few days.

Will refinancing hurt my credit score?

The hard credit inquiry will lower your score by a few points temporarily, usually 5 to 10 points. This dip recovers within a few months. Closing your old loan and opening a new one also affects your credit mix and average account age, but the overall impact is small if you make on-time payments on the new loan.

What if I want to refinance but still owe more than the car is worth?

Bank of America will not refinance if you are underwater. You will need to pay down the principal until you owe less than the vehicle's value. Once you reach that point, you can apply. Check your car's current value on Kelley Blue Book or NADA Guides to see how much more you need to pay down.

Can I refinance a Bank of America auto loan multiple times?

Yes, you can refinance more than once, but each refinance triggers a hard credit inquiry and resets your loan term. Refinancing multiple times in a short period can hurt your credit score and may signal financial stress to lenders. Space refinances at least 12 to 24 months apart.