Bank of America no Cost Mortgage?

I was in my Bank of America branch yesterday setting up a new checking account. I noticed a sign in the lobby touting a no cost mortgage. I inquired with the personal banker about the details of the mortgage. He told me that they just raise the rate to cover the closing costs. I said to him that it doesn't sound like a no cost mortgage because there is a penalty in rate for the no closing cost option. I also said that if it were a true no cost mortgage then it should be the same rate as the full fee mortgage. He did not have any comment on that. My guess would be that there is no such thing as a no cost mortgage. Thanks BofA for confusing me.

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Countrywide advertising can be deceptive?

I just saw an advertising on the MSN homepage for Countrywide that the key interest rates have dropped and it is a good time to refinance your home. This is the biggest blatent lie by a bank that I have ever seen. First of all there is no such thing as a no cost mortgage and secondly what the Federal Reserve is doing with interest rates has nothing to do with mortgage rates. If this were the case, the 30 year rate would be below 3%. Interest rates have everything to do with how the stock market is doing and not what the feds are doing. Shame on Countrywide for being bozos.

Shame on you Countrywide for slick advertising. Consumer Dave to the rescue.

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