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 do not refinance loans from other lenders. If your current loan is with a different bank, credit union, or finance company, you would need to apply for a new loan elsewhere and use the proceeds to pay off your existing loan — a process called a cash-out refinance, which is different from what Bank of America calls refinancing.
The refinance option through Bank of America is designed to let existing customers adjust their loan terms, lower their interest rate if their credit has improved, or change their monthly payment. You contact Bank of America directly to explore whether refinancing makes sense for your situation.
Key Takeaways
- Bank of America refinances only auto loans they originated; they do not take over loans from other lenders.
- Refinancing through Bank of America typically requires a credit check and may result in a new interest rate based on your current credit profile.
- The process involves contacting Bank of America's auto lending department directly by phone or through your online account.
- Refinancing can lower your monthly payment or shorten your loan term, but extending the term will increase total interest paid over the life of the loan.
When Bank of America will refinance your existing auto loan
Bank of America considers refinancing requests when your credit score has improved since you took out the original loan, when interest rates have dropped significantly, or when you want to adjust your payment schedule. If you originally financed through Bank of America and have made payments on time, you have a clearer path to refinancing than someone applying from scratch.
The bank will pull your current credit report and may require a new appraisal of the vehicle's value. The vehicle must still be in acceptable condition and have reasonable mileage for its age. If the car is worth significantly less than what you owe, refinancing becomes harder or impossible — this situation is called being "upside down" on the loan.
How to start the refinancing process with Bank of America
Contact Bank of America's auto lending department directly. You can call the customer service number on the back of your loan statement, log into your online account and look for refinancing options, or visit a local branch. Have your loan account number and current vehicle information ready.
Bank of America will ask about your reason for refinancing, review your current credit, and run a hard inquiry on your credit report. This inquiry will temporarily lower your credit score by a few points. If the bank approves the refinance, they will present you with new loan terms — a new interest rate, a new monthly payment, and a new payoff date.
You are not obligated to accept the new terms. If the rate or payment does not work for you, you can decline and keep your original loan. Declining does not hurt your credit or your relationship with the bank.
What changes when you refinance with Bank of America
Refinancing resets your loan. You get a new interest rate based on your current credit score and market conditions. You choose a new loan term — typically 24, 36, 48, 60, or 72 months. A shorter term means higher monthly payments but less total interest. A longer term means lower monthly payments but more total interest paid over time.
The new loan replaces the old one entirely. Your original loan is paid off and closed. You begin making payments under the new agreement. The payoff date changes based on the new term you select.
Situations where Bank of America refinancing may not work
If your credit score has dropped since you took out the original loan, Bank of America may deny the refinance or offer a higher interest rate than you currently have. Refinancing in this case would make your situation worse, not better.
If you owe more than the vehicle is worth, refinancing is unlikely. Bank of America bases the new loan amount on the car's current market value, not on what you owe. If you are significantly upside down, you would need to pay the difference out of pocket to refinance.
If you have missed payments or have recent late payments on your account, Bank of America will likely deny the request. The bank uses your payment history as a key factor in deciding whether to refinance.
Refinancing a loan from another lender through Bank of America
Bank of America does not take over loans from other financial institutions. If you have an auto loan with another bank or credit union and want to refinance, you have two options: apply for a new auto loan from Bank of America and use the money to pay off your existing loan, or explore refinancing through your current lender or a third-party lender.
Applying for a new Bank of America auto loan is a separate process from refinancing. You would go through their standard auto lending application, which includes a credit check, income verification, and vehicle appraisal. If approved, Bank of America funds the new loan, you use that money to pay off your old loan in full, and you then owe Bank of America instead.
Questions to ask Bank of America before refinancing
Ask what your new interest rate will be before you commit. Ask whether there are any prepayment penalties on your current loan — some older loans charge a fee if you pay them off early. Ask how long the refinancing process takes from approval to funding. Ask whether the new loan has the same insurance and registration requirements as your original loan.
Ask what happens if you want to pay off the loan early under the new terms. Most auto loans allow early payoff without penalty, but confirm this applies to your refinanced loan.
Frequently Asked Questions
Will refinancing my Bank of America auto loan hurt my credit score?
The hard credit inquiry will lower your score by a few points temporarily, usually recovering within a few months. However, refinancing itself does not damage your credit. If you make on-time payments on the new loan, your credit will improve over time.
Can I refinance if I still owe money on my car?
Yes. Bank of America refinances loans where you still owe a balance. The new loan pays off the old one, and you continue making payments. You cannot refinance if you owe significantly more than the car is worth.
How long does Bank of America refinancing take?
The timeline varies, but most refinances are approved and funded within one to two weeks if you have good credit and the vehicle appraisal is straightforward. Complex cases or those requiring additional documentation may take longer.
What if my interest rate goes up after refinancing?
If your credit score has dropped or interest rates have risen, your new rate may be higher than your original rate. You can decline the refinance and keep your current loan. Always compare the new terms to your existing loan before accepting.
Do I need to refinance through Bank of America, or can I shop around?
You can shop around. Other banks, credit unions, and online lenders also offer auto refinancing. Comparing offers from multiple lenders helps you find the best rate and terms for your situation.