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.
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
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...
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.
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.
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?
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
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:
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
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.
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.
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.
