“Bank of America, the country’s largest mortgage lender, is rolling out a large program to finance loans between about $730,000 and $1.5 million, with fixed 30-year rates starting in the upper 5% range. The loans will be available through the bank’s retail network and through its Countrywide Home Loans subsidiary.”
“Bank of America quotes a minimum [down payment] of 20%….[and the new program] requires hefty liquid resources — six months of principal, interest, property tax and insurance payments in reserve — plus fully documented income, solid credit scores and a full appraisal.”
UPDATE: A “tipster” beats us to the editorial punch (at least with respect to impact):
Countrywide/B of A has had that product since October of last year. Rates were in the 6% range.
I suspect that the debt to income hurdles are pretty high to get that rate (you’ll note they don’t mention it…), because it hasn’t seemed to change the market that much in the 5 months they’ve had it.
As we’ve seen with other programs, we expect the Bank of America program to benefit qualified buyers though lower rates but not to have a significant impact on activity or demand.