I've heard about those "No Fee" mortgages.
BUT DAMN ...
One bank says I get $250 if it doesn't work!
Bank of America insists its new "No Fee Mortgage Plus" delivers what it says without raising interest rates to applicants. The program comes with none of the traditional mortgage and settlement charges -application fee, appraisal fee, credit, title insurance, title search, private mortgage insurance, closing fees, among others-and offers competitive rates.
Now you folks know that on a regular home loan purchase, fees can amount to 3 to 5 percent of the mortgage amount. This can run in the thousands of dollars.
For me, the worse part about buying property is seeing all the "junk fees" tagged on and all the mortgage brokers and loan officers claiming they are "industry standard". The standard is to take all us buyers to the cleaners.
Bank of America is talk'n the talk. They are trying to make a bold move in time of very stagnent interest rates and subzero home purchases.
Does B of A walk the walk? Hell yes! Check this out. B of A is so sure of it'self they suggest, "Take your B ofA quote in hand and comparison shop with any other lenders. If you are approved by B of A for the loan and then choose to close with a competitor, the bank promises to pay $250!!!
Ok, so what are the catches?
1) You can't apply unless you already have an account with the bank, however minimum.
2) State and local taxes, property taxes and other government levies are not covered. Nor are prepaid interest, discount points, hazard or flood insurance and homeowner association fees.
3) And ... The program is for home purchase or second properties. No refinancing allowed.
That being said, go out give it a try. After you are done, pull up this same blog article. And leave your comments by clicking on "FOLKS WHO GET IT"