Yield Spread Premium (YSP) is an additional compensation paid to a mortgage broker as compensation for providing a borrower with a higher interest rate loan.
Any YSP will be listed on the HUD-1 form presented at closing.
The yield spread premium is one of the many fees associated with buying a property or home.
A law was passed in 1999 to protect homebuyers from exorbitant yield spread fees.
In 2010, the Dodd-Frank Act banned the practice of YSP.
2/28 adjustable rate mortgages (ARM) offer an initial fixed rate for two years, after which the interest rate is adjusted semi-annually for another 28 years.
An 80-10-10 mortgage consists of two mortgages: the first is a fixed-rate loan of 80% of the value of the home; the second - 10% as a loan secured by equity capital; and the remaining 10% as a down payment in cash.
A movable property loan is secured by a movable item or movable property that is used to purchase the loan. The creditor has the right of ownership of the movable property.
The holiday act literally releases the parties to the transaction from previous obligations, such as payments on the terms of the mortgage, because the loan is repaid.
An FHA 203(k) loan is a government-secured mortgage loan, which is essentially a construction loan that finances both the purchase and renovation of a home.