Price Mortgage drops lender fees to cut closing costs

Price Mortgage, LLC says it is eliminating underwriting, processing and application fees for borrowers in Phoenix and across more than 30 states. The move is designed to save homebuyers about $1,500 at closing as housing costs stay elevated.

Why it matters: - Price Mortgage is trying to lower one of the most immediate cash hurdles in homebuying: upfront lender fees at closing. - The company says the change saves borrowers an average of $1,500, which can help with down payments, appraisals and inspections. - The strategy targets affordability pressure from inflation, high home prices and elevated mortgage rates.

What happened: - Price Mortgage, LLC announced a zero lender fees policy for borrowers in Phoenix and nationwide. - The policy eliminates underwriting, processing and application fees. - The company is based in Gilbert, Arizona, and serves the greater Phoenix area. - Price Mortgage said it is licensed to operate in more than 30 states.

The details: - Price Mortgage operates as an independent mortgage broker, not a retail bank. - The company says it works with more than 125 wholesale lenders to shop for mortgage rates and loan packages. - Price Mortgage says wholesale pricing helps it pass lower interest rates to borrowers than many retail banks offer. - The firm says it has more than 18 years of industry experience. - Available loan programs include conventional loans, FHA loans, VA loans, ITIN mortgage programs and refinancing options. - The company says pre-qualification takes 5 to 15 minutes. - Price Mortgage says borrowers can receive a rate quote in under a minute without application fees. - The company lists its website as Price Mortgage and its Google Business Profile as client reviews and company details.

Between the lines: - The announcement positions Price Mortgage against big banks by framing lender fees and retail markups as avoidable costs. - The message is aimed at first-time buyers and other borrowers who are sensitive to upfront cash requirements. - The company is also using its wholesale-broker model as a differentiator in a crowded mortgage market.

What's next: - Price Mortgage is encouraging homebuyers and homeowners to request rate quotes, explore buydown options and contact a loan officer. - The company says its zero-fee approach applies to purchase and refinance borrowers. - Price Mortgage is also promoting its licensing footprint as a way to serve relocating buyers outside Arizona.

The bottom line: - Price Mortgage is betting that zero lender fees and wholesale rates will appeal to buyers squeezed by today’s housing costs.