loans: Why borrowers pay different rates
- 10/21/13 08:27 AM
Why Borrowers Pay Different Rates - 10/21/2013 Lenders, like any business, have to make a profit. The cost of acquiring the funds, the operating costs to service and the expected profit margin are easily identified. The variable in pricing is the type of mortgage and the credit worthiness of the borrower. A loan with a 3.5% down payment is riskier than a loan with 20% down payment. If the lender has to take the property back to recover their expense, the margin is greater between what is owed and what the property is worth on an 80% mortgage. Credit scoring is a risk-based … (0 comments)
Why Borrowers Pay Different Rates - 10/21/2013 
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