YSP Issue

by Tom
(Ocala, Florida in Marion County)

Tom's experience a YSP Issue (Yield Spread Premium): I recently signed a contract on a condo, purchase price $65K. I put 30 percent down, with a credit score of 800!

My lender came in with a rate of 5.250 percent, 20 year fixed rate mortgage!

He said the rate was high due to the small amount of the loan, then I read the good faith estimate, and saw the YSP baloney...........

I should gotten a much lower rate instead of him getting a kickback. I live in Florida.

Kate's Comment: YSP Issue


***zz-portrait-left.shtml*** Dear Tom, Thanks for drawing attention to Yield Spread Premiums.

The YSP issue is the most common reason to lose a mortgage rate lock. Education is the greatest safeguard.

Have you read Yield Spread Premium - Say What? I wrote it to improve the blood pressure of homeowners across the nation!

Here's more on the 20 year fixed rate mortgage too.

I wish you well in your pursuit of the best mortgage rate.

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