A Yield Spread Premium (YSP) is a mortgage broker’s profit, which is paid by the lender in exchange for a higher interest rate. It is a way to avoid charging the borrower any out-of-pocket fees and lower up-front closing costs on the borrower’s loan, if they understand the contract. However, Most of the time a yield spread premium confuses many homeowners ans they end up choosing the deal that “sounds” better…
This is how a Mortgage Yield Spread Premium works:
* If a borrower chooses a lower interest rate, he/she will pay the up-front the processing fees, 3rd party costs and YSP (Yield Spread Premium) Continue reading ‘Mortgage Yield Spread Premiums & What You Should Know to Save Yourself Money’ »