2. We charge NO POINTS!
It is important to understand nothing is free in this world. Do you honestly think a bank will give you a six figure loan for free? That sh*t don’t even sound right. Cars are not free, iHop is not free, Burger King is not free, so why would a mortgage be free. Pay attention, this is where it gets tricky. Banks who lend there own money do not have to disclose how much a rate is paying them. Let me explain.
There is a fee described as Yield Spread Premium. Yield Spread Premium is a fee (described as a percentage) that is determined based on the rate you are given. But a bank doesn’t have to disclose this (regulations change all the time, so maybe by the time you read this article, hopefully they will have to disclose it). Also, understand that points and fees are not the same thing. Points are what the loan officer is charging you to do the loan. Fees are what the bank is charging you to do the loan. So, here is the trick. If you demand that you don’t want to pay points, well, they will just beef up the fees to cover the difference.
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