Goodbye Countrywide, hello flat-fee closing costs

Monday, the infamous Countrywide name was scheduled to disappear forever, as Bank of America (BoA) tries to cut the memory cord with that symbol of the subprime disaster years.

While it is mildly interesting to see the deep-sixing of a brand that was the largest mortgage financier in the US (financing 20% of America's mortgages) just a few years ago, the really interesting news is the new pricing structure BoA announced that same day.

If you've ever taken out a mortgage, you've likely been baffled by the array of fees that make up your "closing costs." They differ from one lender to the next, with certain items called different things...you'd almost get the idea they were meant to be intentionally confusing and hard to compare (I'm shocked...shocked!).

BoA is taking a significant step towards ending the closing cost confusion by offering flat-fee mortgages. Depending on your state, you'll either pay $2,995, $2495, or $1,995 for your loan costs. At present, these flat-rate terms are only available for new purchases (not refinances) and only through BoA branches. But it's a start.

I don't know that those specific price points are anything to write home about, but it seems like a step in the right direction in terms of clarifying this often-confusing aspect of buying a home. If it forces other lenders to follow suit, it could lead to a more easily navigated landscape for consumers shopping for a mortgage.

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Mark Biller is Sound Mind Investing's Executive Editor. Visit www.soundmindinvesting.com to learn more.