Homeowners considering a home equity loan now will have the option of a $49 flat-fee loan being offered by Ditech.com, a direct mortgage lender.


Ditech is known for its flat-fee closing cost packages for home purchases. The flat-fee home equity loan allows consumers to borrow up to 100 percent of the equity they have built in their homes.


“The tremendous success of our $395 Flat Fee mortgage product for refinancing and home purchase has proved that there is a strong appetite for guaranteed closing cost products,” said Mike McCarthy, general manager, Ditech.com


With the flat-fee product, borrowers can arrive at the closing table knowing the closing cost on their loan in advance. The average closing costs for other Ditech home equity loans is about $444, the company said.


According to Bankrate.com, home equity loan originations climbed 35 percent in 2004 to $431.3 billion. Common uses of home equity include consolidating debt, funding education and making home improvements, all at a lower interest rate than is available with credit cards or other unsecured debt.


The $49 Flat Fee home equity product applies to home equity loans and owner-occupied, single-family residential properties. The $49 charge is assessed to cover the cost of the title search. The borrower is responsible for mortgage tax, appraisal fees that exceed $300, new loan interest costs, outstanding property liens, property taxes, property insurance, association fees, seller fees if any, optional owner’s title insurance and certifications.


Founded in 1995, Ditech.com is a direct mortgage lender and a business unit of GMAC Mortgage.


Send news tips or a letter to the editor to opinion@inman.com.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Thank you for subscribing to Morning Headlines.
Back to top
We've updated our terms of use.Read them here×