Bank of America recently announced it is offering no-fee mortgages and will not charge for private mortgage insurance (PMI).
You will not pay fees for: Bank of America will not charge for applications, appraisals, loan originations, title insurance, or flood certifications. BoA has also announced they will not charge for PMI, which is often required for borrowers who put less than a 20 percent down-payment of the house’s purchase price.
You will pay fees for: Refinancing is not covered under their new program and borrowers are still responsible for transfer taxes, recording fees, their own title insurance (which is not always necessary!) and legal fees, among other charges.
Other perks: To remain competitive with their rates, Bank of America will also pay $250 to people who obtain mortgage approvals but close with other lenders. BoA also guarantees the loans will close within 25 days unless the customer requests more time or there are extenuating circumstances.
Why are they doing this when no one else is? Bank of America is the nation’s 2nd largest bank, and it seems as though they are making moves to take over the top spot. This is the latest in a series of moves that is intended to shake up the industry, and more importantly, bring lasting customers to BoA.
Concerning this most recent deal, Floyd Robinson, the president of BoA’s home loan business said, “We’ve found that when a customer has a mortgage with the bank, he typically buys five other products, so it’s a great way to build a relationship.”
If you are in the market for a new home, it can’t hurt to at least look at Bank of America as an option. It might even save you a couple thousand dollars. 🙂
Free stock trades at Bank of America
In other industry shaking moves, last October, Bank of America began a program that allows investors to make up to 30 free online stock trades a month when they have at least $25,000 in various deposit accounts within the bank. That’s nice but, if you have a more limited budget, you can get 10 free trades at Zecco per month, with a minimum of $2,500 in your account.