Monday, April 27
Written 10:05 a.m. EDT
FLAT FEE: Bank of America is introducing a new pricing structure for purchase mortgages today. With Flat Fee Mortgage Plus, homebuyers will pay one fee to Bank of America, and they won't have to pay any separate origination, appraisal or other third-party charges.
The pricing plan is available only for home purchases -- not for refinances -- and only in the bank's branches. So you can't get the flat-fee mortgage through a broker. You're not required to have another account with Bank of America. Executives say they hope you are so pleased with your experience that you open a checking or credit card account.
The flat fees vary, depending on the state. There are three pricing tiers. The most expensive tier is $2,995, and includes three of the nation's four most populous states -- California, New York and Florida. The other two states in the $2,995 tier are Hawaii and New Jersey.
The $2,495 tier applies to 16 states and Washington, D.C. The states are Arizona, Connecticut, Idaho, Louisiana, Maryland, Massachusetts, Nevada, New Mexico, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Utah, Virginia and Washington.
The other 29 states, including Illinois and Texas, are in the $1,995 tier.
Bank of America is introducing two other things today. One is what the bank calls its "Clarity Commitment" -- a one-page summary of loan terms that are designed to be understandable. Then there's the Bank of America Home Loan Guide, which is an online tool designed to help borrowers determine what they can reasonably afford.
It is no coincidence that Bank of America is rolling out these products today, because this is the day when BofA is eliminating the Countrywide brand name. Bank of America announced 15 months ago that it would buy Countrywide, and today marks the end of the final phase of that purchase. Countrywide signs and letterhead are supposed to go away today.