Bank of America Brings back Zero Down Mortgages Zero closing costs

Bank of America Announces New Zero Down Payment Mortgage Solution For First Time Homebuyers, To Expand Homeownership Opportunities in Black/African American and Hispanic-Latino Communities. In this video I will delve in how Bank of America’s plan to issue zero down loans may not be as altruistic as they want you to believe.

Bank of america brings back zero down mortgages it is perhaps everyone’s dream to own a place they can call home where they can lay their head and make great memories with bank of america’s new zero down payment mortgage program anyone can purchase a home with no money down and the bank will also pay for your closing expenses and private mortgage insurance or

Pmi he heard that right bank of america claims they are doing this to serve the community by assisting low-income minorities and gaining financial stability home ownership and experiencing the american dream affordable and accessible housing for the masses can be revolutionary for many demographics bank of america has taken on this task but the question remains

Is your plan to silver bullet to wealth or makes this sound too good to be true as a consumer if you’re looking to buy a home does this look like the best deal for you hello and welcome to another video of finance sense where we cover all the latest trends in the financial markets and the economy in this video we will discuss what bank of america plans to do or

At least claims to plan and convey some insights regarding its consequences there are a lot of questions issues and concerns associated with these new mortgages and together we’ll unravel them but before that make sure to leave a like subscribe and comment down below if you enjoyed watching this video and turn on the notification bell to keep posted now without

Further ado let’s head on to the video according to bank of america their new zero down payment mortgage program is meant to assist minorities who have historically been undeserved and are experiencing difficulties purchasing a house their argument boils down to this since you’re already making payments to your landlord you may as well put that money toward your

Mortgage instead then you’ll have a better chance of building equity in your house and saving money in the long run bank of america stated that home ownership strengthens our communities and can help individuals and families to build wealth over time however there is a cost associated with his mortgage program despite the fact that there is no down payment required

No closing charges and no private mortgage insurance or pmi someone must pay the bill so the bank will tack on the extra cost to your monthly mortgage payment but at least you’ll put the money toward homeownership instead of in someone else’s pockets however we all recall how zero down mortgages contributed significantly to the real estate crash of 2008 when

People bought homes they could not afford because banks allow them to borrow money as they wanted then as property values dropped borrowers found themselves unable to recoup their losses and either abandon their properties or had them foreclosed upon on the bright side banks have never participated in any predatory loan schemes right especially those targeting

Minorities or persons with limited financial literacy but here’s the harsh reality banks exist to make a profit where do their profits come from lending money to others if they have more cash in hand to give out they may collect interest on a larger principal amount increasing their profit margins they would prefer lending you five hundred thousand dollars rather

Than 250 000 since the former generates more interest for the bank when it comes to its people the bank doesn’t care what color their skin is the only color they’re interested in is green therefore the question on everyone’s mind in the bank is how much money can we make they are just interested in making money not promoting social change increasing the bank’s

Income and profit by lending you more money is a priority thus the bank will likely agree to your request the inconvenient truth is that many of us get a false sense of empowerment upon learning that we have been approved for a new credit line while it’s tempting to think all right the bank is going to loan me money to buy a flat screen tv or yes they’ll lend me

Money for my dream to travel around the world doing so incorrectly will not result in any benefit but will instead wrap you in the hands of the bank to tell you the truth among the finest things a bank will do for you is to turn down your application for a consumer loan if you don’t meet the requirements why let me explain getting a consumer loan means taking

Out a loan for personal rather than business reasons such as purchasing a luxury item or a vacation depending on your perspective this may be a tv a designer bag a cruise or a credit card rejection from the loan application process is preferable to acceptance since it prevents you from sinking further into debt to purchase something that isn’t profitable okay

But how about a house can we not consider it a valuable asset it all depends on how you define it the fact is that some people will take advantage of the zero down payment option and those people will reap significant benefits from doing so some will figure out how to be responsible with their resources and they will gain much from this program if they utilize it

Properly the money they produce will be huge and aid them much in their pursuit of financial security but majority of individuals are not often these individuals will get taken advantage of by the program since they don’t know enough about money to calculate the amount they should only borrow how their property’s value affects their overall financial position or

How to negotiate with the bank to their benefit meanwhile the bank will declare that it is facilitating consumers ability to become homeowners too often individuals loan far more than they need purchase a property of other means and then find themselves trapped there then if real estate values drop they are the ones who will be saddled with the massive debt payment

As they are the ones whose homes are worth less than their mortgages ultimately most individuals will suffer because of this scheme but others will gain considerably he may gain much from credit cards and other financial instruments if you take the time to learn how they work the system will take advantage of you if you don’t take the initiative to learn it you

Need financial literacy and an understanding of the system to succeed where do i find out about this system banking institutions exist to generate profit they seek just a profit from your situation there are three ways you can participate in this handing them a large sum of money to spend on stuff you cannot afford utilizing the bank’s money to generate more money

For yourself or opt out of the system altogether the next step is to get the financial education you need to make the best decisions for your future the fact that you’ve shown that you can obtain financing for a property in the range of 300 or 500 000 is not always indicative of your readiness to make such a large purchase there is a strong case against renting in

Favor of buying a house since it is possible to utilize the money you would be spending on rent each month to put toward your mortgage this however overlooks the reality that you will now be responsible for all the expenses involved with owning a house including the cost of any renovations or repairs as well as the costs of real estate taxes insurance and anything

Else that may arise and then there’s a matter of the amount you’re sending in regular installments to the bank if you take up a 30-year mortgage for example the first 14 or 15 years of your payment will be spent pay the interest to the bank rather than reducing the principal balance of your mortgage so don’t expect your payment to increase your home’s equity

Immediately by the 15th year roughly half of your monthly payments will go toward paying down the principal and increasing your equity in such a case what does it imply okay so instead of paying your rent you’ll put a two thousand dollars monthly on your mortgage however during the first 14 years of a mortgage most of your two thousand dollar monthly payment will

Be used for paying the bank rather than your landlord here is when your financial literacy and knowledge of where your money is best spent will come in handy is it better to purchase a large home or apartment and spend most of your income on monthly rent or to acquire a smaller home and invest a difference in your abilities income and rental property now you’re

Not planning on living in the house or a condo you just purchased instead you intend to rent it out to others and earn a profit meanwhile the motivation behind most house purchases is not financial gain but the desire to create family memories you’re buying a house with an eye toward future profit but ultimately the primary aim is to support your family you intend

To use a rental property as a means of generating income comparing a house to a rental property will require another set of parameters for this reason you should not consider your house an asset but rather a liability however it is always to your advantage to realize a profit from your property however the issue is that your house becomes nothing more than a drain

On your finances you’ll be drained financially until you finally decide to sell at which point you’ll hopefully make a profit instead of relying on luck you should take a more practical approach to your finances as no billionaire or truly accomplished person ever boasts about being wealthy by say paying off their mortgage or amassing their home’s equity that’d

Be a huge plus though when discussing how well the individuals amass their fortune the subject of their house is almost an afterthought compared to their business stock market portfolio property and various investments so you should avoid the trap of attempting to play the same game as everyone else by adopting the mindset of the wealthy you will receive the same

Results if you do what everyone else does to sum it up banking institutions are in the business of generating money so it’s time that you begin thinking outside the box and getting some financial knowledge whether this is good or bad for you depends on your perspective the primary goal of bank of america is profit they would not be running this program if it did

Not provide a profit the truth hurts like this now is the time to put your financial knowledge to use avoid being duped into handing up your hard-earned cash and instead determine whether or not the scheme is in your best interest you need to be financially literate and think critically for yourself because while the program may be beneficial for some it will

Likely be ineffective for most individuals hi we hope you liked watching this video and learned something important if you enjoyed it please like subscribe and hit the notification bell to stay up to date on our videos and make sure to leave your thoughts about bank of america’s mortgage program in the comments section below this is finance sense helping you to

Keep up with all the latest trends in the financial markets and the economy until next time

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Bank of America Brings back Zero Down Mortgages Zero closing costs By Financense