Bank of America's No-Fee Mortgage
Filed in archive Housing by Justin McHenry on May 09, 2007

Here's the deal. You take out a morgage and you don't pay a bunch of crappy little fees that usually lead to thousands more dollars than you think you're paying when you made the decision to buy the house. There are no loan origination fees, no closing fees, and, probably best of all, no private mortgage insurance (PMI) if you're doing a down payment of less than 20%.
If you've never bought a house or condo, this might not mean much to you. But if you have, you're well aware of what a pain in the can it is. You settle on a place to buy, you find a lender to take on your mortgage, and then all of a sudden the shakedown begins. You get nickeled and dimed left and right until you sudden;y find yourself sitting at the closing table ready to cry. Home ownership can be great; home buying is generally torture.
There's no guarantee that Bank of America will be offering you a loan at an overall lower cost than anyone else, so it still makes sense to compare rates, but as a buyer it is nice to feel like you understand all the costs up front instead of constantly digging for extra cash after you thought you'd so carefully figured out how much house you could afford.
The program has been running in a handful of test markets and supposedly Bank of America's already done a billion dollars of morgages under it. If you happen to be one of Bank of America's No-Fee buyers, I'd be hugely interested to hear about how the process went for you.
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