Missoula Griz Posted May 23, 2007 Share Posted May 23, 2007 (edited) Sounds like a decent rate...but when you put 20% down there are MANY lenders who have stated programs at the same rate as full doc...Bank Of America and National City to name a few... YSP is what the lender pays your broker to send the loan to them...it will be listed on the settlement statement... The yield spread premium is not always disclosed on the Settlement Statement. We fund with our own money, being a correspondent lender. We underwrite the loan ourselves based off of the investor's guidelines, and then sell the loan to them. Many benefits being in this position, but some down falls. We have recourse on the loan for the first 12 payments. Unless we broker out a loan to a subprime lender, our YSP is never disclosed to the borrower. Edited May 23, 2007 by Missoula Griz Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted May 23, 2007 Share Posted May 23, 2007 The yield spread premium is not always disclosed on the Settlement Statement. We fund with our own money, being a corespondent lender. We underwrite the loan ourselves based off of the investor's guidelines, then sell the loan to them. Many benefits being in this position, but some down falls. We have recourse on the loan for the first 12 payments. Unless we broker out a loan to a subprime lender, our YSP is never disclosed to the borrower. I know, I hate you guys for that!... Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted May 23, 2007 Share Posted May 23, 2007 I am closing in on my first home in 1-2 weeks. My rate is locked at 6.375, 20% down, and I have excellent credit - NYC What origination fee are you being charged? Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted May 23, 2007 Share Posted May 23, 2007 I know, I hate you guys for that!... It really makes the process go smooth, because the underwriter and closer are in my office and both enjoy free beer . I cannot remember the last time a loan did not fund on time. It makes the realtor/lender relationship much easier as well. Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted May 23, 2007 Share Posted May 23, 2007 It really makes the process go smooth, because the underwriter and closer are in my office and both enjoy free beer . I cannot remember the last time a loan did not fund on time. It makes the realtor/lender relationship much easier as well. We have started to look into becoming a correspondent lender...I will be long gone before that happens... Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted May 23, 2007 Share Posted May 23, 2007 We have started to look into becoming a correspondent lender...I will be long gone before that happens... Why will you be gone? Quote Link to comment Share on other sites More sharing options...
sundaynfl Posted May 23, 2007 Share Posted May 23, 2007 10% cash + 10% home equity line of credit on my 10% cash = 20% not sure if that matters. on the 10% home equity line I current am getting 8.50% which seems like the national avg for that. I can't wait till I finally get the keys though. Anxiety is sinking is and is getting worst by the day. I would advise you to not worry about the rate you have and enjoy your new home transaction. FNMA bonds have sold off the last few weeks and the Bears are continuing to put pressure on the markets. Your rate was locked during a pretty good period for mortgage rates. We are probably .250% to .375% higher in rates than when you locked in your mortgage. Money is coming out of US bonds and being reinvested in the stock markets or in foriegn bonds that are giving higher yields to investors. Yesterday bonds closed exactly on the floor of support for FNMA bonds and have pushed through that floor of support this afternoon. This matches the lows set earlier this year in January, meaning rates are at the highest point since then... We are currently at 97.78 and opened at 97.97, so we are off 19 basis points since the open. I am guessing that you probably locked your loan on or around May 7th... since that time FNMA bonds have went from a price of 100.71 to the current price of 97.97... or in layman's terms the price for a FNMA 5.5 has dropped 274 basis points... This means that you would pay ~ 2.74 points to get the same deal that you did about two weeks ago! Or $2740 per 100,000 borrowed! So to your current lender! Quote Link to comment Share on other sites More sharing options...
Chavez Posted May 24, 2007 Share Posted May 24, 2007 Is this the proper calculation for your formula? 100,000 principal X 6%= $6,000 X 30 years= $180,000/3 = $60,000.... No. Quote Link to comment Share on other sites More sharing options...
Chavez Posted May 24, 2007 Share Posted May 24, 2007 ...so where the hell were you guys when Skippy needed a hand, is all I want to know... Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted May 24, 2007 Share Posted May 24, 2007 I would advise you to not worry about the rate you have and enjoy your new home transaction. FNMA bonds have sold off the last few weeks and the Bears are continuing to put pressure on the markets. Your rate was locked during a pretty good period for mortgage rates. We are probably .250% to .375% higher in rates than when you locked in your mortgage. Money is coming out of US bonds and being reinvested in the stock markets or in foriegn bonds that are giving higher yields to investors. Yesterday bonds closed exactly on the floor of support for FNMA bonds and have pushed through that floor of support this afternoon. This matches the lows set earlier this year in January, meaning rates are at the highest point since then... We are currently at 97.78 and opened at 97.97, so we are off 19 basis points since the open. I am guessing that you probably locked your loan on or around May 7th... since that time FNMA bonds have went from a price of 100.71 to the current price of 97.97... or in layman's terms the price for a FNMA 5.5 has dropped 274 basis points... This means that you would pay ~ 2.74 points to get the same deal that you did about two weeks ago! Or $2740 per 100,000 borrowed! So to your current lender! This is actually very good advice... Quote Link to comment Share on other sites More sharing options...
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