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This is an incredibly simple explanation of the term "Yield Spread Premium" and how interest rates don't change, the price does.

Your buyers will love this.

 

Via Rick Pelleriti-MBA & Upfront Mortgage Broker (Clarion Mortgage Capital, Inc.):

 

Borrowers always ask me if I think interest rates will go up or go down.  I can now tell them with 100% certainty what will happen.


Here it is......


Interest Rates will stay the same  - they will never change.


Does that sound odd to you?  I agree that it might.


However, it is true, and I will now explain what I mean.

Many borrowers do not realize that every interest rate has a PRICE.  It is the PRICE that changes, NOT the rate.

So, one day...4.75% may have a price of 100.000, and the next day, the price may improve to 100.125 (or maybe even in the same day).

Here's a video I created to explain in detail what all these rates and prices mean.

This should make it very clear.

 

Video of How I Work as an Upfront Mortgage Broker.

 

Rick Pelleriti, M.B.A.                                                                   
Clarion Mortgage Capital, Inc.
California Upfront Mortgage Broker
DRE #01466511

530-205-9145 (Direct)
408-672-1980 (Cell)
408-503-0900 (Fax)

www.upfrontmortgageplanner.com

rick@upfrontmortgageplanner.com

 

Jane Peters, connecting you to the L.A. real estate scene

Buying or selling real estate in Los Angeles can be an overwhelming process.  Contact Jane Peters, Los Angeles realtor specializing in absentee owners, out of town buyers, and those who need that extra attention, in order to make the transaction a smooth, trouble-free, and fun experience.

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6 Comments on Interest Rates - A Simple Explanation

FEB
28
2010
1,400,535 Points 109 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
Rick is great isn't he? I love the way he explains things even though this one sounds a bit strange :)
9:39pm • #1
562,551 Points 54 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Judi,  he is great isn't he.  Strange?  How so?  :)
9:49pm • #2
MAR
01
2010
806,042 Points 27 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Hi Jane,

Now that is thinking out of the box and creating a clear and concise way to be answer the inevitable question "what is going to happen to the interest rates?" I love his explanation and have it now booked market. Great find!
7:11am • #3
562,551 Points 54 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Dorie,  thanks, and thanks to Rick.
11:35am • #4
MAR
04
2010
210,049 Points 1 Featured Post Outside Blog

Thanks Jane for the reblog and nice words.

 

Judi and Dori - well, thank you both very kindly!
10:46am • #5
562,551 Points 54 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Rick,  you are most welcome.
11:02am • #6

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Jane Peters - Los Angeles Real Estate (310-473-6919)

Los Angeles, CA

More about me…

Power Brokers Int'l

Address: Beverly Hills, CA, 90210

Office Phone: (310) 473-6919

Cell Phone: (310) 351-9208

Email Me

A Los Angeles Realtor specializing in absentee owners, out-of-town buyers and those needing extra assistance with one of the most important transactions of their lives. Just sit back and relax! You are in capable hands.
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