Posted on 10/31/2022 12:44:57 PM PDT by Red Badger
Huntsville is a great area—but interest rate rises are blood-thirsty—and realtors are often the last ones to process the bad news.
come on, my first mortgage was 10%
Mine was 10% also. But 10% simple, owner financed. Much more reasonable than a compound rate.
He has about a 50 percent chance of being correct ... like everyone else ...
They make a fixed amount off each loan. Originating fee, closing costs …. So volume is everything to those companies. Very few are after the loan for the long term. In 2010 my loan was wanted as a long term hold by my lender. I have no reason why, maybe a good risk reward …., anyway I was putting 20% down but the home vs land value caused many lenders to just denied the discussion. My loan has never been sold so idk why. I digress. Rocket loans makes $ of the loan process and then sells the loan. No one makes there mortgage payment out to them. So no volume = no money. Their model was refinancing. No one refis from 3 or 4 percent to 7. Hence they are dead.
I will miss their Super Bowl ads. The Jason Momoa ad for them is a classic.
https://www.youtube.com/watch?v=zTEGPytXfY8
Someone who understands business. What are you doing here?
Mine was 6.75%...............
In the old days the mortgage originators also made money with the yield spread premiums.
The way that worked was that the rate the borrower paid was a little bit higher than the rate that the purchasers of the mortgage backed securities received.
The net present value of the difference was pocketed by the mortgage originator. This was a “secret” hidden from borrowers—at one point I know Congress tried to ban it—don’t know if they were successful or not.
Correct
Yep
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.