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- Andrew Adams, "203K Specialist"
- Contributions:9349
No body does a true NO Fee mortgage.
I will bet that the rate that you are given is higher than wat you could obtain if you were paying closing costs.
That doesn't mean that it's a bad loan, it just means that you need to compare BoA offer to others to determine if it is the best deal for you.
- Dave Mason, "DebtFreeDave"
- Contributions:1315
They just raise the rates to cover costs......
- Merritt Noel
- Contributions:8
agree and agree. You always need to ask yourslef with anything that is advertised for free. Would you work for free? Maybe you are a really nice guy and food on the table does matter. But the majority of the world does not work for free...always for something.
I would go with your typical loan with closing costs and have them wrapped into the loan depending on your situation. However, maybe a No Fee loan is your only option with you have no equity in the home?
I FIND IT SO AMAZING EVERY SUPPOSED HOMEOWNER ON HERE TALKS ABOUT COUNTRYWIDE OR BANK OF AMERICA EVERY SINGLE TIME.
NEVER AN EXCEPTION. WE ALL KNOW THERE IS 100 DIFFERENT LENDERS . THE ONLY RATES THEY EVER MENTION ARE BANK OF AMERICA'S AND COUNTRYWIDES.
WHY? AS A FREE UPDATE AND ADVERTISMENT OF RATES.
- Vincent Towne, "Countrywide2008"
- Contributions:251
Mortgage fee plus is almost like CW's no Closing costs loan. The only major difference is BofA's mortgage is just that, a mortgage, Mortgage fee plus doesn't apply to refi's. Cw No Closing Costs loan applies to mortgages and refi's. The Rate is slightly higher on both loans because the lender absorbs the fee's. They are good loans if you don't have any money to put down.
- MORTGAGE OPERATOR
- Contributions:2081
Nothing is Free...pay now upfront in closing costs or pay later with higher rates..you choose.
ITS JUST AMAZING ABOUT THE ONLY THINGS MENTIONED ARE COUNTRYWIDE AND BANK OF AMERICA.
YOU GUYS WONDER WHY THIS SECTION IS SUCH A JOKE? ITS A GRAVEYARD OF BROKERS AND LOAN OFFICERS. NO REAL HOMEOWNERS COME HERE.
- Bruce McLaughlin, "mortgagebruce"
- Contributions:2
- rocketdog1
- Contributions:18
I have to disagree, I am about to close with this program and the rate I locked into was as good or better than the 30yr fixed rate at several lenders I looked at. For the same rate elsewhere, I would have to play closing costs AND PMI. I did do my research and couldn't find a program that came close to this one. That was just comparing 30yr fixed programs, not looking at ARMS mind you. I also looked at doing an 80/15/5 type program as well since BofA only requires 5% down. I am very, very pleased.
hey rocketdog. do you feel like telling us all these other lenders you went to ? what were they charging? what were their closing costs? show us the data that proves you got the best deal. we would appreciate it.
- rocketdog1
- Contributions:18
I'm not sure I have all the specifics of each lender any more but here is what I have written or remember from all the conversations at the time. I talked to someone at lending tree, who was quoting a "no-pmi" program (i.e. higher interest rate) and that was 6.125 if I remember correctly and would require the typical lender and title complany closing costs. I also talked to someone at Highland Loan Source (the lender referred to by the builder for a $3k incentive which I got anyway) and he quoted some 80/15 program with a best rate of 5.625/1pt and 5.875/no points on the 1st mortgage w/ rates around 7 I think. I talked to two other brokers as well, and again the best rates were 5.625 but would either require a 2nd mortgage or PMI and all required closings costs. I even told them all about the BofA program and asked them to match or beat it and none could and the builder gave me the $3k incentive because their associated lender couldn't come close. I locked into 5.625 before the rates dropped briefly and am paying NO lender or title company closing costs and no PMI and an added benefit for me of not being forced to escrow for T&I. I did not want an ARM as I intend to be in the house until my youngest graduates high school at the earliest (about 12 more years).
- rocketdog1
- Contributions:18
To
- rocketdog1
- Contributions:18
I looked at some other major lenders as well like Wells Fargo, Wachovia, WAMU, Chase and Citibank as well as going through my employee benefits site with Quicken Loans and GMAC Mortgage and none of their programs/quotes were matching or beating what I am getting with BofA. It might not be the best program for some, but for me it is.
- DannyInSoCal
- Contributions:445
The EZ explaination: Simply ask your BofA loan officer how much lower the rate will be if you pay your own closing costs.
The difference is your "true" cost.
Be sure you are comparing both rates on the same day/time - With matching 30/45/60 lock-in period, program, etc...
Thanx, D
- DannyInSoCal
- Contributions:445
PS: In any event - Your lender should offer to total all your closing costs -
Then charge you an equal amount in the form of a discount point -
And issue you a lenders credit to pay the applicable costs.
You net out the same - And all your closing costs become tax deductable.
( Example: 1/30th of your discount point fee is deductable every year you keep your 30yr loan. When you eventually refi/sell - The balance is a complete write-off.)
Thanx, D
- Andrew Adams, "203K Specialist"
- Contributions:9349
I have never heard of BoA not collecting taxes on a loan that is above 80% Loan to Value.
BoA has a great program and not everyone qualifies for it. Typically it requires home buyer education that is only offered quarterly.
- rocketdog1
- Contributions:18
I would have expected to need to escrow as well and asked a few times to make sure and was told each time I would not have to escrow or do the prepaids for taxes and insurance. I just need to provide proof of homeowners insurance coverage.
This program does not require a buyer education program, it does however require a FICO above 680 I believe, some other account with BofA (checking, savings, etc) and 5% down plus obviously meet the income requirements.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Do they reqiure 6 months reserves as well?
- rocketdog1
- Contributions:18
What do you mean by 6 months reserves? 6 months of interest or 6 months worth of payments in savings?
- Andrew Adams, "203K Specialist"
- Contributions:9349
6 months of payments in savings.
rocketdog1
thankyou for the explanation. sounds good to me. good luck with your loan.
- rocketdog1
- Contributions:18
No, I only need to provide two months of bank statements to show where the 5% downpayment was coming from. There was no 6 month reserve requirement.
- Michael DeMay, "mdemay"
- Contributions:68
NO ONE can touch B of A 's 30 year fixed jumbos right now. Being in California and personally calling and confirming their program, and losing loan after loan to them, B of A does have a true no fee jumbo 30 year fixed and the rate is 6.125-6.375%
- DannyInSoCal
- Contributions:445
From the inside... Shhhhhhhhhhh...
BofA is underwriting all Jumbo product up to $719k for FHA standards.
Hmmmm. Wonder why that is............
Three other investors are scrambling to release the same. Stay tuned...
Thanx, D
- frank1003
- Contributions:266
There's not alot of profit in doing a no fee mortgage and they really only work when rates are steadily decreasing over a long period of time. In the last re-fi boom, I wrote hundreds of no-fee mortgages through ABN-AMRO. Basically what they did is mark all of the fees POCL and bump up the rate high enough to cover the costs with the YSP. We only earned about 55 bps on each deal (split 50/50 between bank and lender) but the volume was enormous. (I was writing an avg of 5 loans a day, avg loan size $250k, you do the math.) The customer never got the best available rate, but they weren't paying anything, so they could re-fi every 6 months as the rates dropped, each time at no cost. That way it was a good deal. Who wants to pay closing costs 3 times within a year? That was then, this is now. On a purchase (then or now) one is almost always better off paying closing costs out of pocket to get the best rate. On a re-fi in an environment of sustained, rapidly decreasing rates, there is a huge benefit to opting for a no-cost refi. It enables a borrower to jump down the rate ladder without paying. However, this was when rates went steadily down from the 8's to the 5's over a 2 year period. Right now, already in the high 5 to low 6 range, there would hardly be a benefit, because there's not (in my opinoin) enough "lower steps" to jump downward on, thus it's best to get the best rate possible and pay your own closing costs. I really don't think rates will go from the 5's to the 2's over the next 2 years, as they went from the 8's to the 5's several years ago. Hot damn, those were good days!
- DannyInSoCal
- Contributions:445
You are assuming all refi's are rate driven.
The bulk of our business is "cause" driven.
Purchases, divorce buy-outs, tax settlements, etc. And more often we are geting calls from clients adding second storys or complete remodels - Instead of just moving up.
If you don't have at least 1/2 of your fundings being referred by professionals in your area - And another 1/4 from your client database - You haven't done the work required to establish your core business.
You are right - When rates drop - This business is easy. That's why I'm so happy everytime rates go up...
Thanx, D
- Nathaniel Kelly, "nkelly32"
- Contributions:162
Good to have a network I see Danny:)
- frank1003
- Contributions:266
Guess you told me. I'm done. Thanks for the lesson. I'm going to apply for a job at a car wash as we speak. I'm such the fool for not capitalizing on the downtrodden. What was I thinking? Most re-fi's ARE rate-driven (like it or not), but I feel very sorry for myself for not realizing that the MAJORITY (???????) of re-fi's are divorcees. Hell, I could even be getting l*a*i*d more often. Solve a problem, get fringe benefits. I am such an a*s*s. Thank you for opening my blind eyes. I just thank God that after 27 years I don't have to do what you do. I'm happy that your "niche" is yours and not mine. As far as percentages go, 80% of my business comes from existing clients and referrals from same. THAT'S the only way to sustain yourself in this business. What you've done yesterday builds your tomorrows, good or bad. Being an ambulance chaser only makes you yesterday's hero, soon to be forgotten. Incidentally, I'm elated as well when rates go up. When that happens, people like you become victims of a "thinning of the herd" and life gets much better for me. Whenever people like you rear their ugly head, I realize that we are about to turn a corner. If there wasn't a viable profit motive, you wouldn't be here, thus another heyday for me must be right around the corner. Thanks for bringing that to my attention. I'll sleep much better tonight.
- Mike Clancy, "mfc789"
- Contributions:8
For a true "no cost" refinance, check out your local banks that offer home equity loans. Many times there are zero fees, and you can pay off your existing mortgage with them.
Mike
- Dave Mason, "DebtFreeDave"
- Contributions:1315
There is no such thing as a no cost mortgage. More info
BOA No Fee Mortgage
I was looking into Bank of America's No Fee Mortgage Plus, where you do not pay application/closing fees. Does anyone have an opinion on or experience with the program? Thanks!
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