Mortgages Calculator Finally Adds Up With New Mortgage Law
You get what you pay for, or so the saying goes. But consumer advocates have long bemoaned that the opposite is true in the world of mortgages.
Consumers choose between getting their loans through a mortgage broker, who can shop around with lots of lenders, or directly from the lenders themselves. The two options have historically had a long list of trade-offs in terms of customer service, speed and the number of programs each has to offer.
Unfortunately, some borrowers who thought they were paying for a mortgage broker to find them the best loan and lowest rate were unaware that the middle man (or woman) was also being paid another, often larger fee from the lender called the Yield Spread Premium (YSP). And the higher the rate and more onerous the loan terms were for the borrower, the higher that YSP would be. Can you say "backwards?"
Read more at WalletPop.com.
For more insight on mortgages and refinancing see these AOL Real Estateguides:
- Mortgage Jargon in Simple Terms
- How to Get a Low Mortgage Rate
- When to Refinance
- Four Ways to Benefit From a Cash-In Refinance
More on AOL Real Estate:
Find out how to calculate mortgage payments.
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Find foreclosures in your area.
Get property tax help from our experts.