Does Bank of America's No Fee Mortgage Plus really take all the fees/hassles out like they profess?

Answer 1

Hello!

Any lender can offer no fee mortgages. The fees do not disappear - they are built into your rate. The best way to think about it is as a like a see-saw on a playground. If your fees go down, your rate goes up. If your rate goes down, your fees go up. Make sense?

The hassle varies by situation and what your definition of hassle is. In most cases, you'll still need to verify income assets and have your credit in line. There will be an appraisal and title work done on the property. No lender can get around this process or the fees associated with the process. But they can give you a higher rate and a credit for your costs.

I've included a link about closing costs. You can e-mail me directly if you have more questions!

Answer 2

Fees, yes. The fees exist, but you are not paying them or financing them into the loan.

Hassles...well that's going to depend on what kind of hassles you mean. They'll still ask for verification of income and assets, still have title work and appraisals and all that. If there are problems with any of those things, you'll still have hassles.

On any loan application, be sure the information you provide is accurate. Don't try to inflate your income or assets because the conditional lending decision will be based on those things, and if they can't be verified, the terms of the loan may change or you may even be declined.

Answer 3

no fees? correct
no hassles? maybe.

You're paying for those fees in the long run which can be a lot higher than paying it upfront.
If you decided to pay the fees yourself...or have the seller do it..the rates maybe around 6.25%
If you want the no fee program...the rates can be from 6.5% to 6.625%. You will be paying a higher monthly payment which can lead to more money down the line.

I used to work there..and they have pretty high rates. Shop around with a broker.