Thursday, July 29, 2010

How much does a mortgage broker make in yield spread premium on an FHA mortgage loan?

The broker that I spoke with today quoted a 7.125% rate that seems pretty high. He is also charging a 1% origination fee. Am I getting ripped off here?How much does a mortgage broker make in yield spread premium on an FHA mortgage loan?
I am not a mortgage broker but a Realtor and not trying to sell you a loan!





In my opinion this offer is a monster rip off (primarily due to the origination fee) but the easiest way to be 100% sure is to shop your rate by talking to other local mortgage brokers. Get your middle credit score from your present mortgage broker and tell the new ones what it is so they won't have to re-run your credit. Be sure to ask for a good faith estimate based upon the SAME terms to get an apples to apples comparison.How much does a mortgage broker make in yield spread premium on an FHA mortgage loan?
It would be un-professional to say if the rate is high on what you were quoted. I suggest you go to www.bankrate.com and check out





www.fha.gov





www.hud.gov





http://www.fanniemaefoundation.org





http://www.fha-home-loans.com





http://www.freddiemac.com/
What does your Truth-in-Lending Statement say?





Have you checked the FHA Website for names of local lenders?





Have you heard of www.naca.com? Their rate is 4.75% and you don't have to have perfect credit!

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