About Wholesale Mortgage

By Brian Smart

wholesale mortgage jobs

Here are the basics you need to know about mortgage interest rates before refinancing your home loan.

Retail vs. Wholesale

When you’re talking about mortgage interest rates what’s the difference between wholesale and retail? This markup of your mortgage interest rate is called Yield Spread Premium and is what makes mortgage rates “retail.”

Why do mortgage companies and broker mark up interest rates? Loan originators mark up your rate with Yield Spread Premium because the wholesale lender pays them a bonus for charging you above market mortgage rates. You get stuck paying retail mortgage rates and your broker pockets $12,000. Some People Get Wholesale Mortgage Rates…You Can Too

How can you avoid paying Yield Spread Premium when refinancing your mortgage?

Some mortgage bankers and portfolio lenders are also wholesale lenders that deal with mortgage brokers, sometimes exclusively.

Most mortgage lenders have both wholesale and retail departments. Wholesale mortgage lenders generate residential mortgages through a network that includes independent brokers and lenders, offering a wide variety of home financing options: conventional, home equity, government, alternative and jumbo loans. All of these may be purchased from the mortgage professionals, including lenders and brokers, who make up a wholesale mortgage lenders network. Different types of Wholesale Mortgage Lenders

• Wholesale Mortgage Lenders Network
• Second Wholesale Mortgage Lenders

These mortgage lenders offer a range of second mortgage finance programs to help homeowners choose the right option. A second mortgage lender offers competitive rates for different loans. The lending criteria set by second wholesale mortgage lenders are very strict, though the cost is similar to first mortgages.

• Online Wholesale Mortgage Lenders

For advice on which online lender to choose, a professional mortgage advisor may be of help.

• Sub-Prime Wholesale Mortgage Lenders

Sub-prime mortgages are usually written at higher interest rates compared to ordinary mortgages. Sub-prime mortgage lenders help credit-impaired borrowers obtain a mortgage.

Also, check out my other guide on Jumbo Loan and Home Loan Bad Credit