[quote=bearishgurl][quote=Doooh][quote=bearishgurl][quote=Doooh]…So spill it. Edjumicate me.[/quote]

Still need the margin. READ YOUR DOCS, Doooh!![/quote]

Index is 1 yr Libor and margin is 2.25%[/quote]

Sorry, I forgot to ask if the REO lender is asking you to pay any up-front points or origination fee to obtain either of these two mortgages and if so, what is the percentage of the fee(s) or point(s)?[/quote]

The bank is crediting 3% back to the closing costs on the deal. I have to burn $16k or I loose it.
So yes, the loan is being bought down, but that realy doesn’t matter to the equation because it’s not my $. It was pretty easy to narrow down the loan type to choose from when accounting for the kick back. I’d leave $ on the table if I didn’t use one of these loans. The 7.5 yr ARM option didn’t make much sense but it was a contender. I also came up with more than 20% down to take full advantage of the loan limits. $417k was a juicy limit in order to get a better rate, but was more than the standard 20%.