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my bank is charging me 0 point and 0 origination but is re-selling the loan. how do they make money?

3 Answers

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  • Anonymous
    9 years ago
    Favorite Answer

    You are probably paying a slightly higher interest rate than someone who is paying points and fees up front. When they sell the loan, they will get a premium price for it because you will be paying more interest than the next guy, so the investor/buyer will stand to make more money themselves.

  • 9 years ago

    You probably aren't getting the lowest rate you could if you paid those fees up front. Just an extra 1/8 of a percent on the interest rate can cover much more than their costs.

  • ?
    Lv 7
    9 years ago

    "Underwriting Fees"

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