Sunday, May 06, 2007

Are "No-Cost" Mortgages Actually "Cost Free"? What's a "Yield Spread Premium"?

For answers to these questions and a discussion of so-called "no cost mortgages", see these MarketWatch articles:

For a story on the controversial "Yield Spread Premium", thought of by some as a type of hidden charge for a mortgage that may not show up on a closing statement, and by others as a legitimate fee when disclosed and applied properly, see Subprime crisis shines light on mortgage brokers (Class action suit against NovaStar alleges hidden fees; lender to fight back)

For a basic explanation of what the "Yield Spread Premium" is all about, see Mortgage Ails: Too Much Information?

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