If you’re looking at Bank of America for your mortgage refi, there are several things you should know about bank originated home loans before jumping in. According to the Personal Finance Bulletin, B of A will start the week at 4.789% APR for 30-year, fixed rate mortgage refinancing.
Bank of America (NYSE:BAC) continues to have aggressive mortgage rates along with the nations other big lenders through the weekend. The bank is offering 4.625% today for the 30 year fixed rate loan yielding an APR of 4.789%.
Should you refinance with Bank of America? Just because you see this rate online does it mean that you’ll actually be able to get it, and what about fees?
Fees are important because your origination fees and closing costs determines whether you’re getting a good deal from even the best refinance company. Before you realize any savings from mortgage refinancing you’ll have to recoup your origination fee and closing costs from your new lower payment. It is these fees that lenders, including Bank of America slip in the junk fees you want to avoid paying.
In addition to paying unnecessary fees, there is one other reason to consider before choosing Bank of America or any other bank for your next mortgage refi. Did you know that in the 90s the Banking Lobby spent millions of dollars lobbying Congress so that banks could be exempt from the Real Estate Settlement Procedures Act?
This a very important bit of legislation that protects you from predatory lending practices and now, thanks to the Banking Lobby, Bank of America and every other bank are exempt and don’t have to disclose any of their profit margin or markup of your home loan. All B of A is required to give you is their APR, which is based on a fictional Good Faith Estimate and subject to change before closing.
In a way the bank’s APR is little more than a teaser rate which banks are notorious for their Bait & Switch tactics when it comes to refinancing your home.
If you want the best refinance rates while avoiding unnecessary markup and junk fees it pays to do your homework before refinancing. You can learn more about getting the best mortgage rates without paying too much for your next home loan by checking out my free Underground Mortgage Videos.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
