We’ve got some new data that shows why it is so important – especially now – to shop around for the best mortgage rates and terms.
Just take a look at this graph (you can click on it to see a larger version). On the left side, the gray shaded area is pretty small but then it grows bigger on the right hand side. Those gray areas represents the so-called “coupon spread,” which has nothing to do with deals at grocery stores. Instead, it’s a sort of marker to see how mortgage rates that are being reserved for borrowers compare to the loans that are actually funded, or securitized. This essentially reflect the profits pocketed by these originators for your loan transaction.
What this means: Loan originators these days are making a pretty nice profit off of the loans– which means there is room to negotiate on your end for better …
