Both loanDepot and Bank of America Mortgage offer comprehensive mortgage solutions with digital application processes and various loan options. Bank of America provides transparent interest rates and a range of first-time homebuyer programs, while loanDepot offers a Lifetime Guarantee for refinancing and claims faster closing times. The best choice depends on individual needs and preferences, such as the importance of publicly displayed rates versus potential refinance benefits.
| Attribute | loanDepot | Bank of America Mortgage |
|---|---|---|
| Interest Rates (APR) | Not publicly displayed. Requires connecting with a loan officer for a quote. | 30-year fixed-rate: 6.856% (Credit Score: 740 or higher), 15-year fixed-rate: 5.981% (Credit Score: 740 or higher), 5/6 ARM: 7.060% (Credit Score: 740 or higher) |
| Loan Options (Fixed-Rate, ARM, FHA, VA, Jumbo) | Offers fixed-rate and adjustable-rate (ARM) mortgages, including conventional, jumbo, FHA, VA, and USDA loans. Also provides HELOCs and refinance options. | Fixed-Rate Mortgages (15, 20, and 30-year terms), Adjustable-Rate Mortgages (ARMs) (5/1, 7/1, and 10/1 ARMs), FHA Loans, VA Loans, Jumbo Loans, Affordable Loan Solution® mortgage |
| Down Payment Requirements | Conventional loans: 5% minimum (20% to avoid PMI). FHA loans: 3.5% minimum with FICO 580+, 10% with FICO 500-579. VA and USDA loans: No down payment required. | Conventional loans: As low as 3%, FHA loans: 3.5% or higher, VA loans: 0% (up to 100% financing), Affordable Loan Solution®: As low as 3% |
| Closing Costs | Average origination fee in 2023 was $4,909. Total average loan cost was $9,896, which is 3.44% of the loan amount. | Origination Fee: Bank of America charges an origination fee, Closing Cost Calculator: Available to estimate upfront fees |
| Loan Servicing Quality | LoanDepot services the loans it makes, ensuring continuity from application to payoff. | S&P Global Ratings: ABOVE AVERAGE as a residential mortgage loan primary and subordinate lien servicer, AVERAGE as a residential mortgage loan subprime servicer, Technology: Effective technology to meet servicing requirements |
| Online Application Process | Delivers a completely digital mortgage experience via the 'mello smartloan' platform. | Fully digital experience available, Home Loan Navigator®: Allows applicants to track loan process and electronically sign documents, Existing Customers: Can automatically fill in some application details by logging into their online banking account |
| Customer Service Responsiveness | Accessible in person at a branch, over the phone, or via email, online form, or text message. | Online portal, in-branch loan officers, and phone |
| Pre-Approval Speed | Pre-approval decision within 48 hours, potentially immediate at branch locations. | Prequalification: Online, potential results within an hour, Preapproval: Up to 10 business days after providing all requested information, 72 hours or less in simple cases |
| Refinancing Options | Offers rate-and-term and cash-out refinancing options. Lifetime Guarantee program waives lender fees for future refinances on the same property. | Types: Rate-and-term and cash-out refinancing options available, Loan Options: Fixed-rate, ARM, FHA, and VA |
| First-Time Homebuyer Programs | AccessONE+ (up to $9,000 assistance in specific communities, 1% down), AccessZERO (down payment assistance nationwide for FHA loans), Grand Slam (up to $2,000 back after closing with affiliated real estate agent). | Affordable Loan Solution® mortgage, America's Home Grant program, Down Payment Grant program, Community Affordable Loan Solution |
| Geographic Availability | Can originate loans in all 50 states. | All 50 states and Washington, D.C. |
| Minimum Credit Score Requirement | Conventional loans: 620. Jumbo loans: 700. FHA loans: 580. VA loans: 620. | Conventional loans: 620, FHA loans: 580 (may be available), Community Affordable Loan Solution: No minimum credit score |