BOA “No Fee’s Mortage Plus” VS Private Lender?

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I liked the Bank of America “No Fee’s Plus” mortgage because it had no fees and no PMI. Then, I got a reference from a friend at work for a local private mortgage company and contacted them. The loan officer enlightened me of the fact that I could prepay my PMI no matter which lender I used. This lender has been really nice and helpful, but it sounds like he’s gonna give me about the same rates at BOA lists on their website – I haven’t gotten pre-approved, but my credit score is over 800 and my history is good. I can put down 5%. My lender quoted something around 6.5 w/ no points(but he’s always sure to say that it can change day to day) w/ 5% down or around 7% if I choose to go w/ 0 down. The thing is that will all of the fees and prepaying the PMI, my closing costs are around $ 5300. BOA quotes 6.5% on their site w/ .981 pts, which is about $ 1275 for me w/ no other fees

Is there any reason why I shouldn’t use BOA’s “No Fee Mortgage Plus”? I haven’t contacted BOA, but I might tomorrow
I’m looking at fixed rates and the PMI is prepaid forever as far as I understand it, not just one year.

2 Comments
  1. Reply
    Chessman
    May 4, 2011 at 1:49 am

    Any private lender who arrangers a loan, is going to want to kiss your hand because the bank or institution, will be paying a fee, to the arranger of the Mortgage, for the term of the loan.
    Before arranging a loan ,take your time, it is not always the interest you have to worry about .
    you need to be able to change lenders ,without being hit with a large fee.
    pay extra money into a loan and reduce it overall interest.
    pay out the loan without running full term..
    Seek a finance adviser .
    Warring : make saw he is not connected to an institution or bank.

  2. Reply
    kate
    May 4, 2011 at 2:39 am

    PMI for that year may be prepaid but it just ups the loan balance and next year ,
    You pay PMI again , and again the next year . . .
    Unless you have 20% down .

    And you did Not mention Fixed ? ARM ?
    What kind of loan is wayyyy more important than prepaid PMI for 1 year .

    >

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