U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-18-2009, 03:58 PM
 
Location: Fort Worth, TX
11 posts, read 27,862 times
Reputation: 10

Advertisements

Hello all, I wanted to know if anyone here had any recent experience with BofA deal for mortgage with no closing fees.

I did the pre-approval yesterday on a 160,000 loan with 10% percent down. They were trying to get me to by 2 points but I declined and got the lowest option available which was buying .125 point for 180.00 so although i am not locked yet the rate is as 5.00% with apr os 5.011. My wife and I credit score is way above 750 the exact number I am not sure though. I been reading alot of site saying that BofA deal is to good to be true and that they will end up getting you with a higher rate, 5.00 to me is not bad as I got quoted from other people locally at 5.25 and through my Job at citi at 5.37. I should be getting the GFE with the pre-approval letter soon to complete my an offer I made on a house.

So is this deal still to good to be true?, I want to close on April 1
Reply With Quote Quick reply to this message

 
Old 02-18-2009, 04:13 PM
 
16,701 posts, read 18,925,010 times
Reputation: 6798
It sure sounds too good to be true... I wouldn't believe anything until its on paper and the contracts are signed with a rate lock... usually they increase your interest rate to offset the closing costs but it appears your rate is lower... so I don't know... keep your fingers cross...
Reply With Quote Quick reply to this message
 
Old 02-18-2009, 04:38 PM
 
Location: Big skies....woohoo
12,421 posts, read 2,790,368 times
Reputation: 2186
The No Fee loan is only for purchases....that's all I know. Good luck!
Reply With Quote Quick reply to this message
 
Old 02-18-2009, 04:53 PM
 
87 posts, read 347,833 times
Reputation: 35
I was a little leary of the BoA deal too. It looks like they pay everything including title insurance and your lawyer fees. Without any points it sounds too good to be true. But if they do come thru at that rate, thats a great deal. Perhaps they are very eager to loan due to the govt funding.
Reply With Quote Quick reply to this message
 
Old 02-18-2009, 07:01 PM
 
Location: Tucson!
415 posts, read 1,471,033 times
Reputation: 230
BoA has been doing this for years. In fact, I bought my house last year doing this program. Yes, you do pay for it somewhere BUT, their rates are still competitive. I tried to "beat" their deal and I searched all over the internet to find the "catch". I never found the catch NOR anyone that could beat them.

Remember, not only is rate important, but the big picture of monthly payment, etc. Someone can attract you with a good rate, but when you see the monthly payment, you realize that there are hidden fees, etc. I couldn't find a soul to beat BoA.
Reply With Quote Quick reply to this message
 
Old 02-18-2009, 08:19 PM
 
87 posts, read 347,833 times
Reputation: 35
Isnt the monthly payment simply a function of the mortgage rate and the principal amount (and PMI if needed)? I thought all the fees are usually charged upfront at closing. Therefore, 2 different loan companies that give the same rate for the same principal should have the same monthly fee no?
Reply With Quote Quick reply to this message
 
Old 02-18-2009, 09:23 PM
 
Location: Cary NC
553 posts, read 2,082,426 times
Reputation: 303
Quote:
Originally Posted by Domi_Rich View Post
Hello all, I wanted to know if anyone here had any recent experience with BofA deal for mortgage with no closing fees.

I did the pre-approval yesterday on a 160,000 loan with 10% percent down. They were trying to get me to by 2 points but I declined and got the lowest option available which was buying .125 point for 180.00 so although i am not locked yet the rate is as 5.00% with apr os 5.011. My wife and I credit score is way above 750 the exact number I am not sure though. I been reading alot of site saying that BofA deal is to good to be true and that they will end up getting you with a higher rate, 5.00 to me is not bad as I got quoted from other people locally at 5.25 and through my Job at citi at 5.37. I should be getting the GFE with the pre-approval letter soon to complete my an offer I made on a house.

So is this deal still to good to be true?, I want to close on April 1
The GFE doesn't mean squat. Tell them you want a copy of the lock ticket, GFE and truth in lending dislcosure. The lock ticket is proof that your rate has been locked. The GFE states that these are estimates only actual fees may be more or less. If they won't provide you a lock ticket then go elsewhere
Reply With Quote Quick reply to this message
 
Old 02-18-2009, 09:28 PM
 
Location: Cary NC
553 posts, read 2,082,426 times
Reputation: 303
Quote:
Originally Posted by Fant View Post
Isnt the monthly payment simply a function of the mortgage rate and the principal amount (and PMI if needed)? I thought all the fees are usually charged upfront at closing. Therefore, 2 different loan companies that give the same rate for the same principal should have the same monthly fee no?
Yes...unless the loan programs are different. Example 30 year fixed and 30 year fixed interest only. The truth in lending is the key. The APR is a calculation of the mortgage loan AND the fees combined and amortized over 30 years, You can find an APR calculator here:

Financial Annual Percentage Rate

And here:
Mortgage APR calculator-Interest.com

Remember, the higher the APR the higher the fees. Last thing make sure to ask them if there are any 3rd party fees. If the answer is yes then you need to know how much they are and want them reflected on your good faith estimate
Reply With Quote Quick reply to this message
 
Old 02-19-2009, 11:07 AM
 
87 posts, read 347,833 times
Reputation: 35
Well considering this BoA program doesnt charge ANY fees, shouldnt the APR and rate be the same?
Reply With Quote Quick reply to this message
 
Old 02-19-2009, 11:25 AM
 
2,197 posts, read 6,594,651 times
Reputation: 1684
Yes, the APR should be the same as the rate on a true no-fee loan. If you're buying down the rate with points, the APR will be higher. You'll usually pay about a half-point rate premium to get it totally fee-free, but your HUD-1 will show no out-of-pocket costs to the borrower.

Wells Fargo has a no-fee loan, too, but only for 20% LTV, 28% DTI and very high FICO. It's usually full-doc and they will do everything but fingerprint you and ask for DNA. Next month, they might be doing that, too.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top