Refis are hot right now.
01-19-2009, 08:56 PM
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Originally Posted by Chris S' date='Jan 19 2009, 08:45 AM
3.8% in your example is gross interest margin, not net operating income. You make it work by increasing your volume, selling financial services, and hitting your customers w/ fees for everything you can get away w/. You also lend to a wide spectrum of credits w/ risk-adjusted yields.
Many bank loans to investment grade corp. customers @ <100 bps spread over LIBOR, which is generally accepted as their cost of funds for such transactions. (I realize that banks have multiple sources)
Many bank loans to investment grade corp. customers @ <100 bps spread over LIBOR, which is generally accepted as their cost of funds for such transactions. (I realize that banks have multiple sources)
You're right, but have the wrong industry. Any loan made with a rate that low is a shot below the belt and the more money lent the worse it is.
HEAR THAT FOLKS!!!???? If you can prove your income Full Doc and have decent credit now is most certainly the time to get a rate so low it hurts
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