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© 2010. An independently owned and operated member of Prudential Real Estate Affiliates, Inc.
is a registered service mark of The Prudential Insurance Company of America. Equal Housing Opportunity. 
is a registered service mark of The Prudential Insurance Company of America. Equal Housing Opportunity.
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Want to know what you can Afford? Finding the right loan officer can mean the difference between getting a loan and discovering the best loan and terms available. We work with an extensive list of the best loan officers in the business. Each gives our clients the personal attention and care they deserve. Even before you find the home you want to buy, it is important to find the right loan officer to help. YSP is one of the biggest money savers in your mortgage closing costs that you might not know anything about. Check out the YSP on your settlement statement this is one way a mortgage broker can make more money on the loan than you would normally know about: The yield spread premium (YSP) is the cash rebate paid to a mortgage broker based on selling an interest rate above the wholesale par rate that the borrower qualifies for. For example, If a mortgage broker offers a borrower a loan of $100,000 at an interest rate of 6.25%, and the par rate is 6%, the broker may earn a YSP equal to 1.0% of the loan amount. This $1,000 fee is paid by the lender directly to the broker as a \"rebate.\" The mortgage broker earns \"one point\" directly from the lender \"POC\" (Paid outside Closing). Although the borrower is not charged the fee directly, the borrower does pay the fee indirectly by accepting a higher interest rate in exchange for lower fees. In the U.S., mortgage brokers are required to disclose YSP as a fee \"POC\" (Paid Outside Closing) on page 2 of the HUD1 Settlement statement, inside the margin, away from the column marked \"Paid from Borrower's funds at Settlement.\" YSPs as a financial instrument are not controversial. What is controversial is how they are applied, and how and when brokers and lenders have to disclose their existence and their amount to the borrower. Consumer groups such as the Center for Responsible Lending contend that disclosing the YSP to borrowers informs borrowers that the broker might be charging them a higher interest rate than they might otherwise qualify for.[1] They point out that the YSP amount to a fee paid to the broker, and therefore its exact amount should be made known when the borrower commits to a broker (\"locks in the rate\"), rather than later in the loan process. Some mortgage brokers contend that this disclosure requirement puts them at a disadvantage when compared to Institutional (\"Retail\") Lenders, who do not have to disclose their YSP. In addition, they point out that there are truly legitimate reasons for a YSP, such as help in offsetting closing costs for borrowers who are short of cash. For those borrowers, brokers use the YSP to help pay closing costs, as outlined below. Conventional mortgage brokers also point out that if only they were required to disclose their YSP, borrowers might not save money, but simply be steered to retail lenders who would charge the same amount for a loan, but would appear better at first glance because they did not have to list those fees explicitly.
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What Can You Afford
Mortgage Rates
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Want to know what you can Afford? Finding the right loan officer can mean the difference between getting a loan and discovering the best loan and terms available. We work with an extensive list of the best loan officers in the business. Each gives our clients the personal attention and care they deserve. Even before you find the home you want to buy, it is important to find the right loan officer to help. YSP is one of the biggest money savers in your mortgage closing costs that you might not know anything about. Check out the YSP on your settlement statement this is one way a mortgage broker can make more money on the loan than you would normally know about: The yield spread premium (YSP) is the cash rebate paid to a mortgage broker based on selling an interest rate above the wholesale par rate that the borrower qualifies for. For example, If a mortgage broker offers a borrower a loan of $100,000 at an interest rate of 6.25%, and the par rate is 6%, the broker may earn a YSP equal to 1.0% of the loan amount. This $1,000 fee is paid by the lender directly to the broker as a \"rebate.\" The mortgage broker earns \"one point\" directly from the lender \"POC\" (Paid outside Closing). Although the borrower is not charged the fee directly, the borrower does pay the fee indirectly by accepting a higher interest rate in exchange for lower fees. In the U.S., mortgage brokers are required to disclose YSP as a fee \"POC\" (Paid Outside Closing) on page 2 of the HUD1 Settlement statement, inside the margin, away from the column marked \"Paid from Borrower's funds at Settlement.\" YSPs as a financial instrument are not controversial. What is controversial is how they are applied, and how and when brokers and lenders have to disclose their existence and their amount to the borrower. Consumer groups such as the Center for Responsible Lending contend that disclosing the YSP to borrowers informs borrowers that the broker might be charging them a higher interest rate than they might otherwise qualify for.[1] They point out that the YSP amount to a fee paid to the broker, and therefore its exact amount should be made known when the borrower commits to a broker (\"locks in the rate\"), rather than later in the loan process. Some mortgage brokers contend that this disclosure requirement puts them at a disadvantage when compared to Institutional (\"Retail\") Lenders, who do not have to disclose their YSP. In addition, they point out that there are truly legitimate reasons for a YSP, such as help in offsetting closing costs for borrowers who are short of cash. For those borrowers, brokers use the YSP to help pay closing costs, as outlined below. Conventional mortgage brokers also point out that if only they were required to disclose their YSP, borrowers might not save money, but simply be steered to retail lenders who would charge the same amount for a loan, but would appear better at first glance because they did not have to list those fees explicitly.
if (WIDGETBOX) WIDGETBOX.renderWidget('9166efde-cd69-44a4-928b-6924e732c9ed');Get the Mortgage and Loan Calculators widget and many other great free widgets at Widgetbox!
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What Can You Afford
Mortgage Rates