which bank offers best home loan with less or no fees?

Deal Score0

which bank offer this?

Looking for stated income loan with credit score of 780
and price range of 250k and first home.

Bank of america says it needs 10% down on that loan with that credit score and has no PMI and no fees of any kind except for state or county tax.
No fees like appraisal, underwriting or application. or closing cost.

My mortgage broker give us that loan with 5% down but lt of fees and closing cost.

we have two applicant, one has score of 785 , one has 745 score so both are excellent scores.

Which bank you suggest and your advice and expereince.

Thanks

5 Comments
  1. Reply
    Brent G
    May 16, 2011 at 3:35 am

    Dont go with a bank go with a private lender/ mortgage company. It takes Banks forever to do anything. And if their rates are low or they have all closing costs paid for, they will get you in other areas.

  2. Reply
    vellepay
    May 16, 2011 at 4:07 am

    depends on the rate. sometimes it is better to pay more in fees if the rate is low enough to offset. need to weigh in everything to make the best decision. Good luck and move fast. stated programs wont be here much longer

  3. Reply
    godged
    May 16, 2011 at 4:18 am

    If you are getting a low or no fee loan, the lender has to make money somewhere, so you are going to pay a higher interest rate.

  4. Reply
    Cary Cyd
    May 16, 2011 at 4:47 am

    Like all the other answers say – if they say no fees, then they’ll set a higher interest rate over the term of the loan. If you get the lower rate, you’ll pay more fees – the banks are in the business of making money.

    There is no ONE bank. All of them change their loan programs based on the going rate, the economy, how the mortgage business is shaping up, their asset to liability ratio, etc., etc.

    You have to do your home work & decide what is best for your situation – paying a few thousand upfront, or paying several thousand over the term of your mortgage loan. If your cash flow is low, do the latter. If you can afford to pay more upfront, the cost of money now -vs- the cost of money later, is in your favor, so do that.

    You’re the only one who can make the decision that is right for you.

  5. Reply
    Maximilian
    May 16, 2011 at 5:09 am

    Consider the following –

    10% down payment = $ 25,000 vs. a 5% down payment = $ 12,500

    Closing costs consisting of the following will run you between 4% – 5% ($ 9,800 – $ 12,250) of your loan amount depending on what state you’re in – Application fee, credit reporting fee, attorney fees, underwriting fees, recording fees, processing fees, title search, points, state tax, county tax, title insurance (lender’s coverage and owner’s coverage)

    With this simple analysis, it becomes readily apparent that a 10% down loan without closing costs will cost you almost the same as a 5% down payment loan with closing costs.

    With that said, it makes sense then to take into consideration the following 4 factors (there are others but these are the most vital):

    1.How much the seller is contributing towards closing costs – If the seller agrees to take care of all or part of your closing costs then the 5% loan becomes the better option

    2.Whether you are obtaining a 30 Year Fixed rate loan or an Interest Only loan – If you plan on living in your home for less than 5 years then you will want to keep your monthly payments as low as possible since there will be very little principal reduction in the first few years of you loan making an Interest Only loan payment a more sensible solution

    3.Where your home is located – If your home is located in a declining market then you want to make that 10% down payment in order to build instant equity in your home otherwise you could find yourself owning a home that is worth less than what you paid for

    4.How much you’re paying in State taxes – If you are buying a home in New York state for instance you can potentially obtain a credit for your mortgage tax which can represent a savings of almost $ 4,500 in closing costs

    Of course, this is a very superficial analysis because we are not taking into account your long term retirement plans, your children’s 529 college savings plan (if applicable), any major expenses you’re contemplating in the immediate future (a new car, the purchase of a second home, the birth of a child, etc., etc.), your present investment strategy, your insurance needs and obligations or other important financial plans that can be complicated or even derailed if you make the wrong decision about your mortgage financing now.

    If you’re looking for a more comprehensive solution to your financing needs feel free to contact me at RLFunding@AOL.com

    Best Regards,

    J. Polanco
    Financing Advisor
    Robbins and Lloyd Mortgage Corp.
    347 5th Avenue, Suite 1506
    New York, New York 10016
    http://www.RobbinsLloyd.com

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