There is a huge disparity among lenders today with respect to rates. Only Citi is at 4.75% for a “one point loan” (for the above $400,000 loan scenario). All of our other lenders are at 4.875%.
More interesting is that Citi is paying a 0.30% “Commission” at 4.75%, but if we (the broker) charge 1 point, we are now NOT allowed to collect ANY commission b/c of new regulations. That commission will then be credited to the borrower. So, in reality, the quote above is 4.75% at a net cost of only 0.70%.
Transfer Disclosure Statements or a “TDS”: We get calls all the time from Realtors concerned about the effect of serious condition issues illuminated on a TDS. A TDS is the form that sellers fill out disclosing all issues/problems in regard to a property. Realtors do not, however, need to be concerned about such issues with respect to financing, as only two of our lenders require that we provide a TDS. If a TDS is a problem, please let us know and we will avoid those two lenders (we currently have 45 other lenders to choose from.).
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167