[HLS]

In general, banks dont “borrow short term and lend long term”
it’s a recipe for disaster. Banks have 5 yr CD’s but not 15/30yr CD’s. They may have a dept that hedges 30yr bonds, but why should they take the risk of a default IF they can sell it off to Fannie/Freddie and put the taxpayer at risk. Davej is probably better qualified to explain the backend.

BofA has warehouse lines but perhaps they buy 15/30yr MBS as well. Who in their right mind wants to loan money for 15yrs below 4% (or for 30yrs slightly higher) it’s artificial govt stimulus.

If/when rates go up the cash value of bonds being held drops. The risk to any bondholder. Hopefully you get your rate if held to maturity otherwise you need to take a loss of principal to liquidate.

Insurance companies, pension funds may have to settle for these returns, the Fed is squeezing hard. Retired seniors who rely on interest income are suffering terribly.

APR is a terrible way to shop, diff people figure the APR differently.

Govt intervention HAS made things worse, not better. Reagan said it best, the govt is the problem, not the solution.

I’m the one that said foreclosure is the solution, not the problem. 😉 HLS

[HLS]

In general, banks dont “borrow short term and lend long term”
it’s a recipe for disaster. Banks have 5 yr CD’s but not 15/30yr CD’s. They may have a dept that hedges 30yr bonds, but why should they take the risk of a default IF they can sell it off to Fannie/Freddie and put the taxpayer at risk. Davej is probably better qualified to explain the backend.

BofA has warehouse lines but perhaps they buy 15/30yr MBS as well. Who in their right mind wants to loan money for 15yrs below 4% (or for 30yrs slightly higher) it’s artificial govt stimulus.

If/when rates go up the cash value of bonds being held drops. The risk to any bondholder. Hopefully you get your rate if held to maturity otherwise you need to take a loss of principal to liquidate.

Insurance companies, pension funds may have to settle for these returns, the Fed is squeezing hard. Retired seniors who rely on interest income are suffering terribly.

APR is a terrible way to shop, diff people figure the APR differently.

Govt intervention HAS made things worse, not better. Reagan said it best, the govt is the problem, not the solution.

I’m the one that said foreclosure is the solution, not the problem. 😉 HLS

[HLS]

Your loan was not re-sold to BofA.
The SERVICING is being done by BofA.
They will collect payments and handle statements.

Your loan will be sold off in a MBS(Mortgage Backed Security) you will never know who OWNS your loan.

I have tried explaining this before…
Banks have divisons that are MORTGAGE BROKERS. They do not lend their money out for 30 years and own your loan. They may have lines to fund the loan. Completely separately from the servicing department. F/F buy the loan from the originator.

Banks have separate divisions. One does servicing of loans. Another is a credit card division, another is the branch that you walk into, etc.

People want to know why the “BANK” cant modify their loan.
The BANK doesn’t own the loan, they service it.

You probably got a better deal than if you had gone to BofA directly.
The retail rates at the bank are high.

Loans are sold off in mortgage backed securities via Fannie, Freddie, FHA, VA etc.
The company that you send payments to does not “own” your loan.

Many banks recently have had horrible rates. Some are taking 60-90 days to close loans. So many foolish people go to banks thinking they are getting a free loan, so banks take advantage of the ignorance. Banks/direct lenders do not have to disclose the same information that brokers do.
A loophole to fool consumers.

Fannie-Freddie-FHA-VA make the rules and guidelines. People think that because they have had an account at a bank for the last 100 years they are going to get special treatment. (They usually get screwed instead)

A new loan is a new loan. Suckers are having loans modified to delay foreclosures.
If you have equity, it’s not likely that a loan will get modified.

There are exceptions but hopefully you get the idea.

It’s ignorance when people say that banks always have better rates than mortgage brokers, but it’s what plenty of people believe.

[HLS]

Your loan was not re-sold to BofA.
The SERVICING is being done by BofA.
They will collect payments and handle statements.

Your loan will be sold off in a MBS(Mortgage Backed Security) you will never know who OWNS your loan.

I have tried explaining this before…
Banks have divisons that are MORTGAGE BROKERS. They do not lend their money out for 30 years and own your loan. They may have lines to fund the loan. Completely separately from the servicing department. F/F buy the loan from the originator.

Banks have separate divisions. One does servicing of loans. Another is a credit card division, another is the branch that you walk into, etc.

People want to know why the “BANK” cant modify their loan.
The BANK doesn’t own the loan, they service it.

You probably got a better deal than if you had gone to BofA directly.
The retail rates at the bank are high.

Loans are sold off in mortgage backed securities via Fannie, Freddie, FHA, VA etc.
The company that you send payments to does not “own” your loan.

Many banks recently have had horrible rates. Some are taking 60-90 days to close loans. So many foolish people go to banks thinking they are getting a free loan, so banks take advantage of the ignorance. Banks/direct lenders do not have to disclose the same information that brokers do.
A loophole to fool consumers.

Fannie-Freddie-FHA-VA make the rules and guidelines. People think that because they have had an account at a bank for the last 100 years they are going to get special treatment. (They usually get screwed instead)

A new loan is a new loan. Suckers are having loans modified to delay foreclosures.
If you have equity, it’s not likely that a loan will get modified.

There are exceptions but hopefully you get the idea.

It’s ignorance when people say that banks always have better rates than mortgage brokers, but it’s what plenty of people believe.

[HLS]

Your loan was not re-sold to BofA.
The SERVICING is being done by BofA.
They will collect payments and handle statements.

Your loan will be sold off in a MBS(Mortgage Backed Security) you will never know who OWNS your loan.

I have tried explaining this before…
Banks have divisons that are MORTGAGE BROKERS. They do not lend their money out for 30 years and own your loan. They may have lines to fund the loan. Completely separately from the servicing department. F/F buy the loan from the originator.

Banks have separate divisions. One does servicing of loans. Another is a credit card division, another is the branch that you walk into, etc.

People want to know why the “BANK” cant modify their loan.
The BANK doesn’t own the loan, they service it.

You probably got a better deal than if you had gone to BofA directly.
The retail rates at the bank are high.

Loans are sold off in mortgage backed securities via Fannie, Freddie, FHA, VA etc.
The company that you send payments to does not “own” your loan.

Many banks recently have had horrible rates. Some are taking 60-90 days to close loans. So many foolish people go to banks thinking they are getting a free loan, so banks take advantage of the ignorance. Banks/direct lenders do not have to disclose the same information that brokers do.
A loophole to fool consumers.

Fannie-Freddie-FHA-VA make the rules and guidelines. People think that because they have had an account at a bank for the last 100 years they are going to get special treatment. (They usually get screwed instead)

A new loan is a new loan. Suckers are having loans modified to delay foreclosures.
If you have equity, it’s not likely that a loan will get modified.

There are exceptions but hopefully you get the idea.

It’s ignorance when people say that banks always have better rates than mortgage brokers, but it’s what plenty of people believe.

[HLS]

Your loan was not re-sold to BofA.
The SERVICING is being done by BofA.
They will collect payments and handle statements.

Your loan will be sold off in a MBS(Mortgage Backed Security) you will never know who OWNS your loan.

I have tried explaining this before…
Banks have divisons that are MORTGAGE BROKERS. They do not lend their money out for 30 years and own your loan. They may have lines to fund the loan. Completely separately from the servicing department. F/F buy the loan from the originator.

Banks have separate divisions. One does servicing of loans. Another is a credit card division, another is the branch that you walk into, etc.

People want to know why the “BANK” cant modify their loan.
The BANK doesn’t own the loan, they service it.

You probably got a better deal than if you had gone to BofA directly.
The retail rates at the bank are high.

Loans are sold off in mortgage backed securities via Fannie, Freddie, FHA, VA etc.
The company that you send payments to does not “own” your loan.

Many banks recently have had horrible rates. Some are taking 60-90 days to close loans. So many foolish people go to banks thinking they are getting a free loan, so banks take advantage of the ignorance. Banks/direct lenders do not have to disclose the same information that brokers do.
A loophole to fool consumers.

Fannie-Freddie-FHA-VA make the rules and guidelines. People think that because they have had an account at a bank for the last 100 years they are going to get special treatment. (They usually get screwed instead)

A new loan is a new loan. Suckers are having loans modified to delay foreclosures.
If you have equity, it’s not likely that a loan will get modified.

There are exceptions but hopefully you get the idea.

It’s ignorance when people say that banks always have better rates than mortgage brokers, but it’s what plenty of people believe.

[HLS]

Your loan was not re-sold to BofA.
The SERVICING is being done by BofA.
They will collect payments and handle statements.

Your loan will be sold off in a MBS(Mortgage Backed Security) you will never know who OWNS your loan.

I have tried explaining this before…
Banks have divisons that are MORTGAGE BROKERS. They do not lend their money out for 30 years and own your loan. They may have lines to fund the loan. Completely separately from the servicing department. F/F buy the loan from the originator.

Banks have separate divisions. One does servicing of loans. Another is a credit card division, another is the branch that you walk into, etc.

People want to know why the “BANK” cant modify their loan.
The BANK doesn’t own the loan, they service it.

You probably got a better deal than if you had gone to BofA directly.
The retail rates at the bank are high.

Loans are sold off in mortgage backed securities via Fannie, Freddie, FHA, VA etc.
The company that you send payments to does not “own” your loan.

Many banks recently have had horrible rates. Some are taking 60-90 days to close loans. So many foolish people go to banks thinking they are getting a free loan, so banks take advantage of the ignorance. Banks/direct lenders do not have to disclose the same information that brokers do.
A loophole to fool consumers.

Fannie-Freddie-FHA-VA make the rules and guidelines. People think that because they have had an account at a bank for the last 100 years they are going to get special treatment. (They usually get screwed instead)

A new loan is a new loan. Suckers are having loans modified to delay foreclosures.
If you have equity, it’s not likely that a loan will get modified.

There are exceptions but hopefully you get the idea.

It’s ignorance when people say that banks always have better rates than mortgage brokers, but it’s what plenty of people believe.

[HLS]

Only comparing the payment savings on a new loan vs. your old loan is totally inaccurate (and foolish), yet it is how 99% of people make their decisions, including most mortgage “professionals”

There is no one mortgage rate that fits everyone.

If someone bought stock through a stock broker 2 weeks ago and the stock went up since then would someone ask who the stockbroker was thinking that they would get the price of 2 weeks ago ?

It appears that most people don’t understand that pricing changes a bit everyday and it could be better or worse than a few weeks ago.
No cost loans are available everyday if you qualify. It’s the rate that changes.

Many people just don’t qualify for a loan at any interest rate today.

[HLS]

Only comparing the payment savings on a new loan vs. your old loan is totally inaccurate (and foolish), yet it is how 99% of people make their decisions, including most mortgage “professionals”

There is no one mortgage rate that fits everyone.

If someone bought stock through a stock broker 2 weeks ago and the stock went up since then would someone ask who the stockbroker was thinking that they would get the price of 2 weeks ago ?

It appears that most people don’t understand that pricing changes a bit everyday and it could be better or worse than a few weeks ago.
No cost loans are available everyday if you qualify. It’s the rate that changes.

Many people just don’t qualify for a loan at any interest rate today.

[HLS]

Only comparing the payment savings on a new loan vs. your old loan is totally inaccurate (and foolish), yet it is how 99% of people make their decisions, including most mortgage “professionals”

There is no one mortgage rate that fits everyone.

If someone bought stock through a stock broker 2 weeks ago and the stock went up since then would someone ask who the stockbroker was thinking that they would get the price of 2 weeks ago ?

It appears that most people don’t understand that pricing changes a bit everyday and it could be better or worse than a few weeks ago.
No cost loans are available everyday if you qualify. It’s the rate that changes.

Many people just don’t qualify for a loan at any interest rate today.

[HLS]

Only comparing the payment savings on a new loan vs. your old loan is totally inaccurate (and foolish), yet it is how 99% of people make their decisions, including most mortgage “professionals”

There is no one mortgage rate that fits everyone.

If someone bought stock through a stock broker 2 weeks ago and the stock went up since then would someone ask who the stockbroker was thinking that they would get the price of 2 weeks ago ?

It appears that most people don’t understand that pricing changes a bit everyday and it could be better or worse than a few weeks ago.
No cost loans are available everyday if you qualify. It’s the rate that changes.

Many people just don’t qualify for a loan at any interest rate today.

[HLS]

Only comparing the payment savings on a new loan vs. your old loan is totally inaccurate (and foolish), yet it is how 99% of people make their decisions, including most mortgage “professionals”

There is no one mortgage rate that fits everyone.

If someone bought stock through a stock broker 2 weeks ago and the stock went up since then would someone ask who the stockbroker was thinking that they would get the price of 2 weeks ago ?

It appears that most people don’t understand that pricing changes a bit everyday and it could be better or worse than a few weeks ago.
No cost loans are available everyday if you qualify. It’s the rate that changes.

Many people just don’t qualify for a loan at any interest rate today.

[HLS]

True no cost loans (no points, no fees) depend on your loan amount. Today’s pricing for loans above $250,000 for a no cost 30 YR Fixed loan was 4.625%
IF YOU QUALIFY….

A true no cost loan has no closing costs to the borrower.

You are not getting a free loan, you will get a higher rate and have a higher payment than if you paid the costs. If you plan on keeping the loan for at least 4 or 5 years, you are better off paying some costs and getting a lower rate/payment.

In the long run, a no cost loan can cost tens of thousands of dollars in wasted interest over the life of the loan… HLS

Pricing changes every day.

[HLS]

True no cost loans (no points, no fees) depend on your loan amount. Today’s pricing for loans above $250,000 for a no cost 30 YR Fixed loan was 4.625%
IF YOU QUALIFY….

A true no cost loan has no closing costs to the borrower.

You are not getting a free loan, you will get a higher rate and have a higher payment than if you paid the costs. If you plan on keeping the loan for at least 4 or 5 years, you are better off paying some costs and getting a lower rate/payment.

In the long run, a no cost loan can cost tens of thousands of dollars in wasted interest over the life of the loan… HLS

Pricing changes every day.

[HLS]

True no cost loans (no points, no fees) depend on your loan amount. Today’s pricing for loans above $250,000 for a no cost 30 YR Fixed loan was 4.625%
IF YOU QUALIFY….

A true no cost loan has no closing costs to the borrower.

You are not getting a free loan, you will get a higher rate and have a higher payment than if you paid the costs. If you plan on keeping the loan for at least 4 or 5 years, you are better off paying some costs and getting a lower rate/payment.

In the long run, a no cost loan can cost tens of thousands of dollars in wasted interest over the life of the loan… HLS

Pricing changes every day.

[Author]

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