No-fee mortgage option is on the way
A “no fee” mortgage sounds great, doesn’t it? But here’s what I don’t understand…
Clearly there are still COSTS involved in doing a mortgage, right? I mean there is a lot of paperwork, legal contracts etc etc, and it involves a lot of people (even more with all the new and ever changing rules in the industry, I’m sure.)
So, if there are no FEES with a mortgage, and a lender isn’t allowed to charge a higher interest rate to get a better rebate to cover costs… how is this going to work?
Or is this simply something that “sounds good”, but isn’t realistic in the long run? Is it kind of like a promise to lower everyone’s taxes and still balance the budget and eliminate the deficit? …sorry, getting a bit off topic here now I guess
Image source: http://rss.cnn.com/~r/rss/mone…
The consumer bureau on Friday proposed new rules that would force lenders to offer mortgages with no fees or points.