you make a very interesting point.
I always wondered how the broker got paid and figured it was either a commission from the lender or I pay them for their work.
Not knowing what a YSP is, I searched for it and now know that either way, I'm paying the broker. Either out of my pocket at closing or with an YSP, my interest rate that gets bumped from the par rate.
Found the info here. This is good stuff.
http://en.wikipedia.org/wiki/Yield_spread_premium
I was leaning more towards a institutional lender (loan officer at the bank) because I assumed that they would give me the par rate but they may give me the same rate (par rate + extra) that the mortgage broker will but don't have to disclose how much they are making, while a broker has to list it on the GFE. So like you said, it would be best to shop both markets to find the best rate.
What do you guys recommend on a downpayment? The more the better or the least the better? I know that putting down the least amount is a "flipper" mentality because they want to put in the least amount of
their money. But for a first time buyer like me, who may move or may stay for 10+ years, would it be sensible to try to put the most or just enough to qualify?
Thanks for all the input guys.
