Bank of America Has a Waiting List to Refinance

If you’re interested in refinancing your mortgage with Bank of America, you may be in for a big surprise.

Per Bloomberg, the mega bank has been unable to keep up with demand, thanks in part to HARP Phase II, which is beginning to roll out.

The program, which allows pretty much anyone to refinance, regardless of how deeply underwater they are, has led to everyone and their mother inquiring about a possible refi.

And we all know that the biggest names in the finance world will experience the biggest windfall.

Unfortunately, Bank of America has been making steady moves to get out of the mortgage world in recent times.

In fact, their share of the mortgage market has dwindled to little more than five percent, which is less than it held before it acquired Countrywide.

This is largely because they exited both the wholesale and correspondent mortgage businesses to focus on building relationships at the retail level.

90-Day Wait to Refinance

I hope you’re patient, because Bank of America is telling some customers who call during high volume periods of the day to make a reservation.

And once they do that, it could take anywhere from 60 to 90 days just to hear back. Even then, it’s unclear how much longer it will take to apply for a refinance, get the loan underwritten, and finally get it funded.

By then mortgage rates could rise, though that’s probably not too much of a concern. But in the mean time you’d still be stuck making higher monthly mortgage payments, which is clearly no good.

[Are mortgage rates going to stay low?]

If you do manage to “get in the door,” note that Bank of America also stopped offering cash out refinances last month.

So if you’re looking to tap your home equity, you’ll either have to try a HELOC or go elsewhere.

BofA Customers Don’t Need to Wait

That said, one of Bloomberg’s sources said those with Bank of America checking accounts, along with those who go to the bank in person, do not need to wait.

Still, you have to wonder about the bank’s urgency in getting your refinance application to the closing department.

If they’re overloaded, the turn times will surely be extremely high, which could put your time-sensitive mortgage application in danger.

This is all the more reason to shop around for your mortgage, as opposed to just going with the bank you know and “trust.”

If you’re only getting one mortgage quote, you’re doing yourself an injustice.

Be sure to contact several banks, along with a few mortgage brokers, to see what kind of mortgage rate you can get your hands on.

And don’t forget to compare fees and closing costs to ensure you receive the best deal on your refinance.

Tip: How to find the best mortgage rates.