Quote:
Originally Posted by fishsmith
There are no fee's?
For example $100K @ 5.75% apr with current lender 10yrs left on 20yr loan, and the apr is cut down to 3.25 10yr loan.
zero cost to home owner, just a new lender and smaller monthly payment?
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Yes. The lender pays me a premium of 3 % to send them the loan. My comp is 1.5% of the loan amount and I credit 1.5% back to the borrower to pay all of their closing costs. So at the end of the day it cost you 0. Thats on a 10 year. The spreads are different on different terms.