The 6% Interest Rate Cap
Bank of America SCRA: 4% Only If BofA Owns Your Mortgage
Part of: The Complete Guide to the SCRA
What Bank of America owes you
The cap is retroactive to your first day of active duty, and the excess interest is forgiven rather than deferred. Put your numbers in to see the size of your claim, then generate the letter that asks for it.
Simple-interest estimate on a fixed balance, capped at 6%: the 6% statutory ceiling (50 U.S.C. § 3937). Bank of America publishes no lower rate, so 6% is your guaranteed floor. A revolving balance that moved over the period will differ. It sizes the claim; it is not an amortization schedule and not legal advice.
Open the full calculator with these numbers | Generate the letter to Bank of America
Write the letter to Bank of America
Written notice is what starts the clock. Fill these in and the letter below is yours to copy, print, and send with a copy of your orders.
Where to send it: The Request Benefits application on bankofamerica.com/military-banking
Nothing you type here leaves your browser. The letter is built on this device.
Bank of America holds pre-service debt to the SCRA’s 6%, and cuts a home loan to 4% only when it both owns and services that loan. That ownership detail is the most valuable fact about Bank of America’s program, and it is decided by who bought your mortgage, not by you.
Everything below was read on Bank of America’s military banking pages and its Military Benefit Request form on October 5, 2026.
What ownership is worth
Here is rough first-year interest on the starting balance. Real dollars run a little lower as the balances pay down.
| Debt | Contract rate | Interest at contract | After SCRA | You save |
|---|---|---|---|---|
| $280,000 mortgage, owned and serviced by BofA | 6.75% | $18,900 | $11,200 at 4% | $7,700 |
| Same mortgage, owned by Fannie Mae or Freddie Mac | 6.75% | $18,900 | $16,800 at 6% | $2,100 |
| $8,000 credit card | 24% | $1,920 | $480 at 6% | $1,440 |
The same loan, at the same bank, with the same payment address, is worth $5,600 more a year if Bank of America kept it on its books. The statute also requires your monthly payment to drop by the forgiven interest (§ 3937(a)(3)), so you see the savings every month instead of only at payoff. Run your own numbers in the savings calculator.
What Bank of America publishes
Checked October 5, 2026.
| Item | What Bank of America says |
|---|---|
| Cards, lines of credit, installment loans | 6% on pre-service debt |
| Home loans it owns and services | 4% |
| Home loans owned by an investor | ”May still qualify” for 6% |
| Card and installment benefits after active duty | ”Generally” extended 6 more months |
| Home loan benefits after active duty | 12 more months |
| After you leave service | Select card fees waived for life, reduced card rates continued “to aid in transition” |
| Deposit accounts | Most fees waived, including monthly maintenance, ATM, wire, debit card replacement, and standard check orders |
| Refund of interest above the cap | Your choice of account credit or check |
Find out who owns your mortgage
Your servicer is the company you pay. The owner is whoever holds the loan, and that is often Fannie Mae or Freddie Mac even when every statement says Bank of America. Two ways to check before you count on 4%:
- Freddie Mac runs a public loan lookup that tells you whether it owns your mortgage.
- Ask Bank of America directly. Its benefits page invites you to contact the Military Benefits Unit about “the ownership of your home loan” to find out whether the 4% or 6% cap applies.
If an investor owns the loan, you still get 6% under federal law, for your service plus one year. The mortgage servicer guide covers how the cap works when the owner and the servicer are different companies.
The 180-day deadline is the law, not the bank
You will often read that Bank of America gives you 180 days after service to file. Its own military pages and request form do not mention 180 days (read October 5, 2026). The deadline comes from the statute: you must give the lender written notice and a copy of your orders “not later than 180 days” after you are released from service (§ 3937(b)(1)(A)). Once you do, the cap applies back to the date you were called up (§ 3937(b)(2)). Filing late in your tour still recovers the overpaid interest. The deadline checker works out your date.
How to file
File your SCRA request with Bank of America
- Get a copy of your orders, or a letter from your commanding officer, covering your active duty dates.
- List every Bank of America account you opened before active duty: cards, lines of credit, auto and other installment loans, and any home loan or home equity line.
- Fill out the Military Benefit Request form. In the refund section, choose account credit unless you need cash, since a credit lowers your principal and future interest.
- For a home loan, check who owns it with the Freddie Mac lookup or by asking the Military Benefits Unit, so you know whether to expect 4% or 6%.
- Send the form and orders to the Military Benefits Unit by fax at 866.696.0292 (collect from overseas: 302.525.5889) or by mail to PO Box 673026, Dallas, TX 75267-3026. Questions go to 877.345.0693, Monday through Friday, 9 a.m. to 8 p.m. Do not email your SSN unencrypted. Bank of America warns against it.
- Watch the next statements for a lower rate, a lower payment, and the refund. If nothing changes, follow up in writing. The letter generator drafts a follow-up that cites § 3937.
Claim the extras on the way out
The statute counts fees and service charges on a covered debt as interest (§ 3937(d)(1)), so card fees above the cap are already off the table while you serve. Bank of America’s extra is what happens after: select card fees waived for life and reduced card rates continued into your transition. Neither switches on by itself. When you separate, ask in writing which fees stay waived and what rate continues, and keep the answer. The card fee waiver guide compares what other issuers do.
If you fall behind during service
Bank of America’s FAQ says that for a loan you had before service, the SCRA “usually requires the lender to have a court order before foreclosing or repossessing during military service,” and the court has to protect your SCRA rights (read October 5, 2026). It also says plainly that foreclosure or repossession “can still happen if a court decides it’s appropriate,” and that missed or late payments may still be reported to the credit bureaus. The rate cut lowers the payment. It does not pause it. The foreclosure and repossession guide explains what a court has to find, and the credit impact guide covers what can and cannot show up on your report.
Where Bank of America says no
Guard members on state duty ordered by the governor are not eligible. The FAQ requires federal orders from the President or the Secretary of Defense. Debt you took on after you went active is not covered by the SCRA cap at all. New credit during service falls under the Military Lending Act instead.
Comparing banks? The bank comparison shows which lenders publish a rate under 6% on cards and loans, where Bank of America does not.
The law behind this: 50 U.S.C. § 3937
Maximum rate of interest on debts incurred before military service: read the statute , or read § 3937 in plain English, with its enforcement record .
Bank of America Advantage Banking: the account facts, from its own pages
Rank 10 of 22 on the Military Bank Scorecard, 60 of 100 (fees 25/25, ATM 4/15, early pay 0/15, SCRA 10/20, overdraft 6/10, complaints 15/15).
- Monthly fee: $12
- "Monthly maintenance fee for Advantage Plus Banking account - $12.00 To avoid the monthly maintenance fee, meet one of the following requirements during each statement cycle: • Have at least one qualif..." (source, Oct 28, 2026)
- Military waiver
- "When you qualify for military benefits, we'll waive monthly maintenance fees and ATM fees, plus enact Servicemember Civil Relief Act (SCRA) benefits to ease your financial obligation. ... Fees waived:..." (source, Oct 28, 2026)
- ATM rebate
- "not stated for military customers on https://www.bankofamerica.com/military-banking/benefits/ ; the only ATM operator fee refund in the fee schedule is tied to BofA Rewards tiers (Preferred Plus: 'rec..." (source, Oct 28, 2026)
- Overdraft: $10
- "Overdraft Item Fee $10.00 each item • During end-of-day processing, when we determine that you do not have enough available funds in your account to cover an item, then we either pay the item and over..." (source, Oct 28, 2026)
- Foreign transaction fee: 3%
- "International Transaction Fee • International transaction in a foreign currency: 3% of the U.S. dollar amount • International transaction in U.S. dollar: $0 • Fee applies if you use your ATM or Debit ..." (source, Oct 28, 2026)
- Deployment
- "Can I set up direct deposit of my pay while I'm on deployment? Yes, and it's easy to do. ... Can my spouse access my account while I'm deployed? Yes, if your accounts are joint accounts or you've prov..." (source, Oct 28, 2026)
CFPB complaint data, 2023 to 2025
What servicemembers told the CFPB about Bank of America
Servicemembers, veterans and military families filed 2,581 complaints about Bank of America with the Consumer Financial Protection Bureau from 2023 through 2025. That is 5% of the 47,806 complaints the company received from everyone in the same period.
- Most common products
- Checking or savings account (1,020); Credit card (446); Credit reporting or other personal consumer reports (365)
- Most common issues
- Managing an account (543); Incorrect information on your report (219); Problem with a purchase shown on your statement (161)
- How it closed them
- 23% with monetary relief, 10% with non-monetary relief, 68% with an explanation only
- Timely response
- 98% answered within CFPB's timeline
How to read this: CFPB publishes complaints without verifying them, a large customer base produces more complaints, and the closing category is the one the company reported. Complaints about credit reports rarely end in a payment, so the product mix shapes the relief rate. The "Servicemember" tag covers active duty, Guard, Reserve, veterans, retirees and their spouses and dependents. See the CFPB query or compare every lender we cover, or read the full complaint profile.
Do the next thing
- Estimate the refund you are owed Months above 6% on a pre-service balance, as money.
- Generate the rate-cap letter Cites § 3937, asks for every pre-service account.
- What servicemembers report about your lender 349 companies, money-back rates, from the CFPB.
- Compare 22 banks on the scorecard Fees, early pay and SCRA rate, from their own pages.
Frequently asked questions
Does Bank of America go below 6%?
Only on home loans. Its benefits page says that if your home loan is "owned and serviced by us, you'll receive a rate cap of 4%" (read October 5, 2026). Cards, lines of credit, and installment loans such as auto loans get the statutory 6%. If Fannie Mae, Freddie Mac, HUD, or another investor owns your mortgage and Bank of America only services it, the page says you may still qualify for 6%, not 4%.
How long do Bank of America's SCRA benefits last?
Longer than the law requires on cards and installment loans. Bank of America's FAQ says benefits end with your active duty, except home loans, which get 12 more months, and that it "generally" extends card and installment benefits for 6 more months after active duty ends (read October 5, 2026). The 12 months on a mortgage is required by statute (§ 3937(a)(1)(A)). The 6 months on cards and installment loans is Bank of America policy.
Should I take my refund as a check or an account credit?
Usually the credit. The Military Benefit Request form asks you to choose. In Bank of America's words, a credit "will lower your principal balance and the accrual of interest going forward," while a check "won't lower your principal balance and may result in you paying more interest" (form read October 5, 2026). Take the check only if you need the cash for something that costs more than the loan's rate, such as paying off a higher-rate debt elsewhere.
Why did Bank of America deny me after my Guard activation?
Probably because the orders came from your governor. Bank of America's FAQ says benefits require active duty under federal orders from the President or the Secretary of Defense, and that "a call to duty by a governor is not eligible" (read October 5, 2026). Some states protect state-ordered duty under their own laws, so check your state before you give up. The Guard and Reserve coverage guide on this site explains which order types count.
Can my spouse file for me while I am deployed?
Your spouse can request the benefits, according to Bank of America's FAQ, but may need a power of attorney to get account information or make decisions for you (read October 5, 2026). If the account is not joint, set up the power of attorney through your installation legal office before you leave. Without it, a simple request can stall when the bank will not discuss your account with your spouse.
Tools for this topic
- SCRA refund calculator What a lender owes back for charging over 6%.
- Savings calculator What the 6% cap saves you per month and per year.
- Letter generator A rate-cap or lease letter that cites the statute.
Sources
-
Benefits and Protections for Military Members (SCRA) (Bank of America) - Military Benefits FAQs: Deployment, Management, and SCRA (Bank of America)
- Military Benefits Contact Us (Bank of America)
- Military Benefit Request form (Bank of America, PDF)
- Do we own your mortgage? Loan lookup (Freddie Mac)
- 50 U.S.C. § 3937: Maximum rate of interest on debts incurred before military service (govinfo.gov)
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.