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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (14916)	11/8/2003 7:41:55 PM
From: Elroy Jetson	Respond to of 306849

A 220 basis-point servicing-cost difference between large and small loans is very credible and widely accepted. Loan Servicing fees are 0.37% for Fannie Mae ARMs with a five year lock, with additional larger fees paid for defaults. efanniemae.com On the $322,700 Fannie Mae maximum this is $1,194 per year. On a $1,000,000 loan (the maximum you can deduct home mortgage interest on), $1,194 servicing costs are only 0.12%. The difference between 0.37% and 0.12% is 250 basis points - even more than the 220 basis points I estimated.