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Old 02-19-2009, 12:49 PM
 
87 posts, read 348,251 times
Reputation: 35

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goodbyehollywood: how does that wells fargo rate compare to the rest of the industry? Typically the no-fee loans have a higher rate. If i go to BoA site right now, they are showing 30 year fixed 0 points for 5.625 (which i'm assuming is the no-fee rate). If you get a 30 year fixed 0 points from HSBC, you'll get a rate of 5.00 (with typical closing fees). So the question is, is it worth paying the typical closing costs to get the better rate?

Actualy it looks like you can get BoA no-fee loan for 5.00 with 1 point but no typical closing fees. I'd say this is pretty even to HSBC but the fact that BoA pays for title insurance and attorney makes it very attractive.
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Old 02-19-2009, 01:06 PM
 
2,197 posts, read 6,601,685 times
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I just closed at 5.125 with no points or costs. (They even covered my prepaid interest.) I'm not sure what the rates are now. I locked back in December when the 30-year fixed dipped to 4.75, so I paid just under a half-point premium for the no-fee. Comparing 4.75 with closing costs to 5.125 without, I would have breakevened at just under four years. I'm not sure I'll be in the property that long, so the no-fee was the best bet for me.

Some of the sites have a calculator where you can run the numbers and see which scenario is best for your situation. I've heard that BoA and WF are the only two that offer true no-fee loans, but I'm not totally sure about that. Good luck!
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Old 02-19-2009, 11:01 PM
 
1,134 posts, read 2,473,329 times
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The deal is fine IMO. Good by historical standards and in your price range prices are much more stable than in the higher ranges.

Enjoy your home.
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Old 02-20-2009, 08:30 AM
 
Location: Fort Worth, TX
11 posts, read 27,896 times
Reputation: 10
When speaking to the person on the phone they required me to put down 10% instead of 5% and i had to purchase points, which I mentioned was the lowest option they had at .125% @ $180. considering they do not charge PMI it helps because I dont have to do a 80/10 loan. my payments will be comming out to 776 a month. my other loan data would of had me paying 1000 for the 80/15 loan a month. I just put an offer in the house that we like yesterday so I am waiting for the pre-approval letter so we can complete the deal, my wife and I are excited right now our first home :-)
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Old 02-24-2009, 07:39 AM
 
69 posts, read 267,195 times
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Quote:
Originally Posted by Domi_Rich View Post
When speaking to the person on the phone they required me to put down 10% instead of 5% and i had to purchase points, which I mentioned was the lowest option they had at .125% @ $180. considering they do not charge PMI it helps because I dont have to do a 80/10 loan. my payments will be comming out to 776 a month. my other loan data would of had me paying 1000 for the 80/15 loan a month. I just put an offer in the house that we like yesterday so I am waiting for the pre-approval letter so we can complete the deal, my wife and I are excited right now our first home :-)
Congrats!! We are also considering BofA, please keep us updated on your experience... there are so many lenders t o choose from, so many options, it is very frustrating for first time buyers =(
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Old 02-24-2009, 02:09 PM
 
Location: Yardley PA
689 posts, read 2,001,236 times
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I used the no fee mortgage last year and had no issues, no hidden problems etc.. It's not too good to be true, it's for real.
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Old 02-25-2009, 10:22 AM
 
72 posts, read 410,793 times
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I pray that you dont go thru what me and my wife had to go thru with BOA No Fee Mortgage Program back in March 2008. Me and my wife were preapproved for a mortgage thru the same program. Contracts were submitted, credit checks were done, 5% downpayment was deposited and all other documents were submitted. I was told by my lawyers and my agent that a closing date was set for 05/15/08.....a week before the closing date I get a call from BOA telling me that it was determined that the townhouse was in a declining market so I had to pay an addition 5% becuase of their declining market policy. After writing another check for $8000.....I get a call 2 days later telling me that I now have to put down an additional 10% = out to 20% because my wifes credit score(705 at the time) was the lowest of our 2 and we couldn't qualify for the no fee mortgage! I explained to the BOA rep......why the hell are you guys saying her credit is too low to qualify for the no fee mortgage when her credit score was the same exact score that pre-approved us for the loan in the 1st place? The rep couldn't give me an explanation, just kept asking me if I could put down the additional 10%.

I think BOA picks and chooses who qualifies for there program since me and my wife had very good credit(735-me & 705-her), 10% downpayment, no debt(paid off all debt 2 months prior), employment at the same jobs for 5+ years, enough income to qualify, and enough money in savings in case of an major expenses! We ended up going thru Chase and closed on the home a month later.

Good luck to you and I pray that you dont go thru the same bs I went thru!
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Old 03-09-2009, 07:41 PM
 
Location: Fort Worth, TX
11 posts, read 27,896 times
Reputation: 10
Thanks for the heads up, I submitted all my paperwork and determined that my credit score is 779 and my wife is 768, so I do not hope they pull that one on me. and I was required to put 10 percent down which we did not mind. The good thing about living in TX the housing prices does not move a lot like other place in more populated areas. But I did hear about banks declining because the market is going down, but I think if that is the case did you try to get the seller to lower the price?

I mean I love the house we are getting now, but if its determine its in a down market after getting a second opinion from an appraiser i would not buy it as I would be losing money right off the bat.
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Old 04-02-2009, 04:53 PM
 
Location: Fort Worth, TX
11 posts, read 27,896 times
Reputation: 10
Well I finally closed took about 25 minutes at the title company to finish all the paperwork. I had a few hitches which I had them corrected before I went to closing. Being a first time home-owner I really prepared for this I handed my paper work in in the middle of february and closing was on April 1st. I never experienced closing so it was surprising to know that almost everyone waits for the last minute before all paperwork are completed. once I got to the last week it started moving quick so I was a bit impatient at time because I wanted to know if everyone was ok and if all the paperwork I handed in was ok. The hardest part about working with Bank of America is that you can't just show up at the business everything is over the phone. But for what I paid and the deal I got it was totally worth the nervousness i felt that last few days.

Then my wife wanted to go to sears and she wanted to get the new fridge and we had to drop 3200 on the fridge :-( sighhhhh, now I got to keep my wife in check lol.

It's too bad that the BofA deal is no longer available but if it ever comes back up and you have great credit its the best option out there.
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Old 04-02-2009, 09:36 PM
 
87 posts, read 348,251 times
Reputation: 35
HSBC looks like it now has a no fee mortgage ...
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