Mortgage Blog

Retained the Mortgages or not?
August 3rd, 2017 1:37 PM
There are a lot of non-depositor lenders who will only sell the mortgages to the investors. But some bank lenders might choose to retain some of the loans. According to a new report, BOFA retained 30% of the loans last year, and it kept 90% starting this year. And they said that they have "enough" deposits to keep them.

But in another word, does it mean there are no other investment options? or maybe BOFA is more conservative now?

One clients asked me whether it is possible to get 30 yr fixed 3.875%; 15 yr fixed 3.375% rate for the rental in the future.

Here is my answer to him:
Have not seen those rates for a long long time. Almost impossible now.
Think about the rate this way. Normally the rental rates are 0.5% higher than primary.

If you need 30 yr fixed 3.875%; 15 yr fixed 3.375%, then the primary home rates will be 30 yr fixed 3.375%; 15 yr fixed 2.875%.
So It will be impossible under current market.

Posted in:General
Posted by Eric Fang on August 3rd, 2017 1:37 PMPost a Comment

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