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Posted by Jeff Strickland on July 1, 2007, 12:20 am
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>I have been receiving continuous offers to refinance.
> I know most realtors get paid at least 3 - 8% of the final selling
> price.
> Does Mortgage brokers have a fix Broker Fee as well ? Are broker fees
> and realtor fees regulated?
> I heard about YSP, does it actually affect your closing cost ?
>
YSP is a fee the lender pays the broker to bring in a loan package.
YSP does not affect your cost to close a loan, except that if the loan
officer is honest and up front about the value of his service, he'll give
you an interest rate that allows him to collect some portion of his fee from
you and the remaining portion from the lender. For the sake of discussion,
let's say the loan officers reasonable commission for his service to be 1
point, he would give you a rate that had a .500 YSP and get .500 from you.
If you had no cash, then he would give you a rate that gave him 1.000 YSP,
and then all you would pay is the other normal and customary costs. If you
were swimming in cash reserves, then he might encourage you to pay the 1.000
and get you a better rate, but that had no YSP.
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