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A few more questions for Dallas,Shane, or anyone else who can answer

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nmorton79
Regular Contributor

A few more questions for Dallas,Shane, or anyone else who can answer

What is a portfolio loan? A lender that were looking to use offers it.  I've read about it once before, and the lender that at the time offered it as a ARM.  Can it be used as a fixed rate?  Thanx in advance for the replies
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DallasLoanGuy
Super Contributor

Re: A few more questions for Dallas,Shane, or anyone else who can answer

portfolio means that the lender doesnt sell the loan to someone else like fannie mae. they hold the note and service the loan..... like the old days.
 
these days, many lenders sell the paper and your 'interest rate' ends up being a 'coupon rate' on a mortgage backed security sold on wallstreet.
 
 
Retired Lender
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nmorton79
Regular Contributor

Re: A few more questions for Dallas,Shane, or anyone else who can answer

 can it be used as a fixed rate, or is it just an ARM?  Also would the interest rate be higher?
Live~Laugh~Love


Starting Score: EQ 401, TU430
Current Score: EQ 501, TU 500
Goal Score: 700+ across the board


Take the FICO Fitness Challenge









Live~Laugh~Love
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DallasLoanGuy
Super Contributor

Re: A few more questions for Dallas,Shane, or anyone else who can answer



nmorton79 wrote:
 can it be used as a fixed rate, or is it just an ARM?  Also would the interest rate be higher?



both fixed or arm.
typically arm
 
a wee bit higher than market rates.... think 'mitigating risk'
 
 
Retired Lender
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