Special offer

Bank of America Offers a "no-fee" Mortgage

By
Real Estate Agent with Sedona Elite Properties Management, Inc.

Bank of America has unveiled a "no-fee" mortgage loan, with competitive interest rates, pays lender fees and doesn't require private mortgage insurance for those putting down 5% on a home purchase.  The only catch is that you must be a customer of Bank of America and have a FICO score of 620 or above.

Bank of America is so sure that this is the "best value" that they are willing to cut a $250 check to anyone who is approved for the loan and then feels they could have found a better deal with another lender.

Bank of America can keep competitive rates by holding the loans in their own portfolio.  This loan is being launched as "No Fee Mortgage PLUS" Loan and is worth taking a look at.

Washington Mutual had a similar no-fee product with a built-in home equity but Bank of America is the sole lender, at this time, that is waiving the private mortgage insurance on loans with more than 80% loan-to-value ratio.

It will be interesting to see if this spurns a little competition with other lenders..... 

 

 

Comments (1)

Kevin Darlington
KD - Kinnelon, NJ
They absorb a lot of the closing costs, but they charge a point (doesn't this make the savings a wash?)
Jul 08, 2007 02:42 AM