- How Much Money Is Needed To Invest In Rental Property?
- Should A Real Estate Investor Get An Agent’s License?
- 5 Big Factors That Affect The Costs Of Renovating Your Home
- SIBOR Hike – What You Can Do With Your Current Loan
- 6 Basic Don’ts Of Real Estate Negotiation Tactics
- Will New Condo Relaunches Trigger The Great Property Sale We Have All Been Waiting For?
- 10 Proximity Amenities That Add Value To Real Estate
- How To Get Personal Loans More Easily With Good Credit
The par rate is the interest rate on a home loan with zero points charged.
There are basically no upward or downward adjustments made to the fee.
Previously when yield spread premium (YSP) still exists in the industry, the par rate would be the interest without YSP and points.
Also known as a base rate, this is the very minimum price that a loan has to be sold in order for the lender to avoid a loss-making sale.
When posted prices are delivered to loan officers, whether from a bank or a broker, it will have taken par rate into account.
Meaning that posted prices consists of par rates and a spread.
The spread, which can consist of points can be a critical factor in the profitability of a brokerage.
Borrowers would only be able to obtain a mortgage at par rate in extraordinary circumstances.
When valuing the servicing rights of mortgages, the par rate is also a useful figure in calculations.