Interest rates and closing costs

May 2, 2008

I’m not sure whether Bank of America innovated the no closing cost loan or they are simply the best known mortgage lender to offer the program but several of my clients have chosen to go with their program and they have been very happy with the program.

Bank of America’s No Fee Mortgage Plus has no application fees, no closing fees (including loan origination fees, attorney fees, credit check, appraisal etc. but does not include prepaids which includes taxes and insurance) and no private mortgage insurance. This can save a buyer many thousands of dollars in upfront costs when buying a home for sale in Charleston.

Now you know nothing is ever free and Bank of America is able to charge a slightly higher interest rate when offering the program. They also hope that they will be able to sell other bank and financial services to borrowers to make more money and that’s certainly ok. Other lenders have followed the market leader and are now offering similar programs.

With a down payment pretty much required in today’s mortgage lending environment, the best thing about a no closing cost mortgage loan is that money that would have been used for closing costs can now be applied to a down payment. If you are a little short of up front funds when buying a home, this is an excellent option to consider. And 30 year fixed rates are still attractive.

I work with an outstanding mortgage professional at Bank of America in Charleston and if this program is something you are interested in, just send an email or call me at 843.343.3004.

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