Bank of America Home Loans Division Seeks to Make Profit with Refinance Mortgage Rates Under 5%

Posted on | August 7, 2010 | No Comments

There have been many media reports over the last several weeks reporting that 30 year fixed mortgage rates are at all time lows.  Just last week Freddie Mac reported that refinance mortgage rates were below 4.5% for the first time in history when it comes to a 30 year fixed mortgage.  With this being the case Bank of America home loans division seeks to make a profit by gaining customers and getting bad credit loans off the books.


After purchasing Countrywide during the credit crisis Bank of America has had a difficult time getting bad loans off the books.  Countrywide was deep in the subprime mortgage mess and Bank of America is attempting to get many of these home loans modified but it is easier said than done.

Some reports have stated that Bank of America has thought about spinning off parts of their home loans division.  The objective of all financial institutions is to make money and the Bank of America home loans division has struggle to make money.  By adding new customers with refinance mortgage rates being very low, it would be a good start for Bank of America to make a profit.

Author: Alan Lake

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