Seattle

[Agileteks]

Hi,

I am planning to buy an investment property and now I have to look for a good rate. I have a very good credit, but the current mortgage rate for investment property is not in my favor. I used Mortgage Broker a couple of times before but I wasn't happy with them. They made me buy points without telling me, and those added up to the closing cost.

Anyone recommend any bank or credit union or anyway I could get the best rate possible without paying for point or hidden fee? I appreciate it.

[xay]

Zillow marketplace offers you rates without havibng to share any personal details. If you are just shopping around, that might be a good place to start.

[JanelleS]

This is a perfect opportunity to highlight Redfin Financial, our flat fee mortgage brokerage service. For a $2,500 fee, a Redfin mortgage broker consults many lenders to find the best home loan for you, the works with Redfin's real estate team to prepare the paperwork needed to fund your loan and buy a home. You only pay Redfin's fee if we arrange the funding of your loan.

And, you aren't even required to purchase real estate with Redfin to work with Redfin Financial. Here is the link to Redfin Financial.

And, here is the link to other highly recommended lenders we have worked with in each market we serve, including Seattle and of course, Warren at Redfin Financial.

[Mlindekugel]

JanelleS,

What is Redfin's policy on Yield Spread Premium?

[JanelleS]

Oy, for that question, I defer to Warren Cavanaugh, our Redfin Financial Mortgage Broker extraordinaire.

What say you, Warren?

[Cav]

Hi Michael-

If the rate you lock in at has any YSP, Redfin applies that towards your closing costs.

[Mlindekugel]

Great answer. full disclosure. Thanks.

What is YSP? YSP is short for Yield Spread Premium. YSP is compensation paid to the loan originator by the lender. YSP is Paid Outside of Closing (POC) or outside of escrow directly from the lender to the loan originator. The only disclosure to the borrower is a letter in the stack of papers signed at closing and a line on the HUD. Both of which are usually missed or misunderstood.

Most loans with a YSP and a loan origination fee have a higher effective interest rate than loans without YSP when the borrower is unaware of the YSP. Unethical lenders can manipulate their compensation with rate locks, changes in the current market intereest rate, and YSP. it is not illegal for lender to fail to disclose YSP. some lenders believe it is non of the borrowers business. anytime it impacts the borrowers cost of financing it becomes the borrowers business. It is unethical for any lender to fail to disclose all sources of compensation. Redfin discloses the YSP.

An ethical ledner, such Redfin, will disclose the YSP to the client. the ethical lender will rebate all or portion of the YSP after reasonable compensation to pay part of the client's closing costs. This disclosure is a check to provide the best avalable rate at the least cost to the borrower.