Comments on: Forbes Top Mortgage Companies http://www.refiadvisor.com/pblog/tutorial/forbes-top-mortgage-companies/ Expert Mortgage Refinancing Advice You Can Trust Sat, 11 Feb 2012 02:15:20 +0000 hourly 1 http://wordpress.org/?v= By: Mortgage Nerd http://www.refiadvisor.com/pblog/tutorial/forbes-top-mortgage-companies/#comment-9466 Mortgage Nerd Mon, 30 May 2011 15:41:57 +0000 http://www.refiadvisor.com/pblog/2007/02/23/forbes-top-mortgage-companies/#comment-9466 @Robert, I agree that there are brokers out there that are willing to work for 1% of the loan amount. However, is it better for that broker to get paid via a 1% origination fee with no YSP or no origination and 1% YSP? I think you know that the answer to that question is that it depends on the client, their personal preference, how long they are going to stay in the home, whether they have enough equity to roll in closing costs, etc. My point is... The original question and your response make it appear to YSP is inherently evil, when in fact it is NOT. YSP can be used to pay for the brokers commission, and also to pay for some or all of the client's closing costs. How else does somebody get a "no cost" refinance? @Robert, I agree that there are brokers out there that are willing to work for 1% of the loan amount. However, is it better for that broker to get paid via a 1% origination fee with no YSP or no origination and 1% YSP?

I think you know that the answer to that question is that it depends on the client, their personal preference, how long they are going to stay in the home, whether they have enough equity to roll in closing costs, etc.

My point is… The original question and your response make it appear to YSP is inherently evil, when in fact it is NOT. YSP can be used to pay for the brokers commission, and also to pay for some or all of the client’s closing costs. How else does somebody get a “no cost” refinance?

]]> By: Robert http://www.refiadvisor.com/pblog/tutorial/forbes-top-mortgage-companies/#comment-9465 Robert Mon, 30 May 2011 15:00:55 +0000 http://www.refiadvisor.com/pblog/2007/02/23/forbes-top-mortgage-companies/#comment-9465 The problem with Yield Spread Premium is what it does to your payment amount. If the broker gets a commission by marking up your mortgage rate which raises your payment $50 a month, you're still out $600 a year...every year. Offer to pay a reasonable amount for loan origination of one percent, if the broker wants more there are a lot of brokers out there willing to work for that. The problem with Yield Spread Premium is what it does to your payment amount. If the broker gets a commission by marking up your mortgage rate which raises your payment $50 a month, you’re still out $600 a year…every year. Offer to pay a reasonable amount for loan origination of one percent, if the broker wants more there are a lot of brokers out there willing to work for that.

]]> By: Mortgage Nerd http://www.refiadvisor.com/pblog/tutorial/forbes-top-mortgage-companies/#comment-9462 Mortgage Nerd Mon, 30 May 2011 02:32:30 +0000 http://www.refiadvisor.com/pblog/2007/02/23/forbes-top-mortgage-companies/#comment-9462 Hi Margaret, The only companies that receive yield spread premiums are mortgage brokers in the wholesale business. However, every lender, be it a bank or a broker, can receive compensation based giving you a higher interest rate. With banks it is called service release premium and with brokers it is called yield spread premium. To think that just because a broker can receive yield spread premium this somehow means that you can't get a good deal is incorrect. I would recommend shopping various banks and brokers and not worry about how much the broker receives via yield spread premium. If you are still getting the best interest rate and closing costs, does it really matter if the broker gets a little rebate (YSP) from the wholesale lender? Hi Margaret,

The only companies that receive yield spread premiums are mortgage brokers in the wholesale business. However, every lender, be it a bank or a broker, can receive compensation based giving you a higher interest rate. With banks it is called service release premium and with brokers it is called yield spread premium.

To think that just because a broker can receive yield spread premium this somehow means that you can’t get a good deal is incorrect. I would recommend shopping various banks and brokers and not worry about how much the broker receives via yield spread premium. If you are still getting the best interest rate and closing costs, does it really matter if the broker gets a little rebate (YSP) from the wholesale lender?

]]> By: Margaret Wilcher http://www.refiadvisor.com/pblog/tutorial/forbes-top-mortgage-companies/#comment-9329 Margaret Wilcher Thu, 12 May 2011 20:10:08 +0000 http://www.refiadvisor.com/pblog/2007/02/23/forbes-top-mortgage-companies/#comment-9329 How can I find a mortgage company that does not utilize yield spread premiums? How can I find a mortgage company that does not utilize yield spread premiums?

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