Re: 530 fico 85-95%ltv 9-10% interest - Posted by Rich-CA
Posted by Rich-CA on August 06, 2007 at 21:40:50:
I cannot imagine why anyone would buy a note with the parameters you listed. I just did a non-conforming loan with a 795 FICO, 80% LTV and got 8% interest. A note is only as good as the one paying on it. This would have to be very heavily discounted to be interesting.
Remember, an investor can put their money in ING Direct and get in excess of 5% with zero risk (federally insured). A 530 FICO is a LOT of risk. You either have to scale up the interest paid, down payment or discount the note.