Alaska Posted January 24, 2008 Report Share Posted January 24, 2008 Has anyone used BoA No Fee Mortgage? Link to comment Share on other sites More sharing options...
morrow Posted January 24, 2008 Report Share Posted January 24, 2008 FYI-I see this on occassion, "No Fee, no closing costs whatsoever" offers from the bigger banks.There is no such thing. They are making their money somewhere, they dont work for free. I would read the fine print carefully as the fees tend to be tied into the loan and you end up paying double even triple, then if you would have just paid them upfront.Even if they tell you there will be no fees, they may charge a higher interest rate to cover the costs. (higher rate=more money they make, making up the difference).Just be weary. Link to comment Share on other sites More sharing options...
Alaska Posted January 27, 2008 Author Report Share Posted January 27, 2008 thanks morrow. Yes, that's what I thought. they did ask that you have BoA account. checking/savings/cc etc. Link to comment Share on other sites More sharing options...
CrazyForCredit Posted February 3, 2008 Report Share Posted February 3, 2008 I think it might be worth checking out... although I agree it does sound too good to be true.What I like best about BoA is that they don't require you to buy PMI. Assuming they're not simply replacing PMI with a home equity loan, that's a great deal.Here's a link to a web site that provides a brief overview of what BoA is doing. I found the link via google and make no claims to its veracity:http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/05-07-2007/0004582253&EDATE= Link to comment Share on other sites More sharing options...
firstsource Posted February 5, 2008 Report Share Posted February 5, 2008 As you know, there is no such thing as free lunch. Except at my mom's. There are loan programs available with LPMI. Lender Paid Mortgage Insurance. The lender is nice enough to pay the MI for you. Drawbacks?Sure. Interest rate is a bit higher-to pay for the MI. Also, the fee charged is assuming that you are going to keep the mortgage for 30 years, so you are paying the MI for the amount of time until the loan is 78-80% of the initial loan amount. This was a great idea before MI was tax deductible, but not not so great for the average borrower. You should weigh the difference between paying MI and the higher interest rate that you would have for a second. Charles Link to comment Share on other sites More sharing options...
jq26 Posted February 5, 2008 Report Share Posted February 5, 2008 Keep in mind there are income limits to this MI deductibility. It phases out pretty quickly, especially if you live in an expensive part of the nation."Households with adjusted gross incomes of $100,000 or less will be able to deduct 100% of their MI premiums. The deduction is reduced by 10% for each additional $1,000 of adjusted gross household income, phasing out after $109,000.Married individuals filing separate returns who have adjusted gross incomes of $50,000 or less will be able to deduct 50% of their MI premiums. The deduction is reduced by 5% for each additional $500 of adjusted gross income, phasing out after $54,500." Link to comment Share on other sites More sharing options...
Magdalen77 Posted February 7, 2008 Report Share Posted February 7, 2008 Keep in mind there are income limits to this MI deductibility. It phases out pretty quickly, especially if you live in an expensive part of the nation."Households with adjusted gross incomes of $100,000 or less will be able to deduct 100% of their MI premiums. The deduction is reduced by 10% for each additional $1,000 of adjusted gross household income, phasing out after $109,000.Married individuals filing separate returns who have adjusted gross incomes of $50,000 or less will be able to deduct 50% of their MI premiums. The deduction is reduced by 5% for each additional $500 of adjusted gross income, phasing out after $54,500."Is it 50K and phasing out at 54K for singles, too? If so I'm already screwed. Even if the man and I marry, well, we're close to screwed and I don't want to be hoping that he won't get a pay raise so I could deduct stuff. Link to comment Share on other sites More sharing options...
jq26 Posted February 7, 2008 Report Share Posted February 7, 2008 No. It is $100k if you are single or married. Another of the infinite # of marriage penalty clauses. "Mortgage insurance deductability for 2008 | PMIA provision that allows homeowners to treat mortgage insurance premiums the same as interest has been extended past 2007 through 2010. The deduction applies to premiums paid or accrued (including for prepaid mortgage insurance) on acquisition (not on refinancing) debt for mortgage insurance. The deduction is phased out for taxpayers (both single and married filing joint returns) with adjustable gross incomes over $100,000."BTW- generally, there would never be a time where you would root for someone to make less money because of a phase-out of a deduction. Deductions are worth 30 cents on the dollar, whereas income is worth 65-75 cents on the dollar (net tax). I know you were half serious, but someone reading your post may not take it that way. Link to comment Share on other sites More sharing options...
Magdalen77 Posted February 8, 2008 Report Share Posted February 8, 2008 No. It is $100k if you are single or married. Another of the infinite # of marriage penalty clauses. "Mortgage insurance deductability for 2008 | PMIA provision that allows homeowners to treat mortgage insurance premiums the same as interest has been extended past 2007 through 2010. The deduction applies to premiums paid or accrued (including for prepaid mortgage insurance) on acquisition (not on refinancing) debt for mortgage insurance. The deduction is phased out for taxpayers (both single and married filing joint returns) with adjustable gross incomes over $100,000."BTW- generally, there would never be a time where you would root for someone to make less money because of a phase-out of a deduction. Deductions are worth 30 cents on the dollar, whereas income is worth 65-75 cents on the dollar (net tax). I know you were half serious, but someone reading your post may not take it that way.I wasn't serious at all. The man is getting utterly screwed financially, due to his longtime job of 30 years going belly up about 5 years ago. He's always able to find a job, but if you don't have a particular skill or education you're stuck in those BS barely paying jobs. I know this is true because he's been interviewing and putting out applications non-stop. We always have applications out for better jobs. He's done some lateral movement, getting paid somewhat more, better benefits and better work hours, but it's nowhere near what he'd be making if his company had stayed in business. What he did at that job, well, it's very hard to get in with similar companies doing the same thing. Now, in that particular industry when they hire someone, they hire temps, no benefits and they pay dirt. The oldtime people (as the man would have been) still get the same great pay, but it's incredibly hard to get in.Maybe it's his age, I know people aren't supposed to discriminate, but when they have the choice between someone who's 30 years old and someone who's going to be retiring in 7 years, well, they might just chose the younger man.Sometimes I feel very guilty that I'm doing well and I work considerably less than the man does, at least physically. Link to comment Share on other sites More sharing options...
Recommended Posts