Banks Woo Borrowers Who Have Good Credit
Banks have plenty of money available for borrowers with great credit and a desire for a conventional fixed rate mortgage, says James Chessen, chief economist for the American Bankers Association.
To attract these customers, lenders are offering fee waivers, competitive interest rates, and a willingness to negotiate.
Banks like conventional borrowers because they tend to be the kind of customers that will take advantage of other products from the lender, including savings accounts, credit cards and checking accounts. “We find that someone who has a mortgage with us will have about five products in addition to the mortgage,” says Terry Francisco, a spokesman for Bank of America Corp.
To attract this kind of business, Bank of America is offering “No Fee Mortgage Plus,” saving consumers about $3,000 in closing costs, which the bank covers.
Deals like this one make it important for borrowers with good credit to shop around.
Source: The Wall Street Journal, Julian Mincer (09/06/2007)