Released: May 08, 2007

Bank of America offers no fee home loans

Source: Jonathan Stempel, Reuters [USA Today]

Bank of America (BAC) said Monday it is offering no-fee mortgages nationwide for Americans buying homes.

The second-largest U.S. bank said it won’t charge for applications, appraisals, loan originations, title insurance and flood certifications. It also won’t charge for private mortgage insurance — often required for borrowers who put less than 20% down.

The program does not cover refinancings. Borrowers would still be responsible for such things as property taxes, homeowner’s insurance, and home inspection fees, among other costs, the bank said.

Charlotte, N. C.-based Bank of America hopes its No Fee Mortgage PLUS program will add customers amid the current U.S. housing slowdown. It said it launched the program on April 23 without publicly announcing it, and on that day generated a record number of applications to buy homes.

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