Countrywide No Fee Offer - It’s For Real
You may have noticed a number of Countrywide commercials on TV pitching a no closing cost loan. I’ve wondered for some time whether this is a true “no fee” loan or just a “no out of pocket” loan where the fees are added to the new loan.
I got my answer on Friday in an email from Countrywide. As a past customer - not by choice - they end up servicing a large number of loans regardless of the original lender - I “qualified” for their promotion. The email was titled “We want you back” and disclosed the terms of their “no fee” offer.
Upon examination, it is truly that, a “no fee” loan. Countrywide is taking a lot of bashing and I’m one who has been piling on. They deserve it, but not for this promotion. Their fine print says -
Some upfront fees (ex. credit report
and appraisal) may apply that are credited back at funding. Borrowers who choose to pay lenders fees and closing costs upfront may qualify for a lower rate. Refinancing may increase the total number of monthly payments and/or the total amount paid when compared to your current situation.
In a previous article, I wrote about what to look for when considering a no fee loan, because there are trade offs. The same should be considered with Countrywide’s offer. In the mortgage business, “no fee” doesn’t mean “free” and you need to know why.
The new Countrywide “no fee” refinance program is not a scam, but it may also not be the best way for you to refinance. Look at your options before calling Countrywide.