Coach
Related Posts
Hi Fishes,
Any news of hikes in OSSI?
Conversation Starter
Conversation Starter
More Posts
Pro
This is cursed.
Anyone have insight into Clark Hill? Salaries?
Why is Deloitte’s 401k match do anemic?
Additional Posts in The Real Estate Bowl
Mentor
Any Property Management recs in Seattle area? :(
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Small banks make money mainly with loans. They are trying to lower their rates to stay afloat. Thinning their margins in the hope that nobody will start a bank run with them.
What happens to the loan if someone does start a bank run on them? If the bank collapses do the loans go away? If this sounds stupid, apologies on advance. I understand depositors get saved by the govt, but I keep wondering what happens to the loans issued by these failing banks
Thank you all
Coach
Critical thinking time: this is the best rate, not the average rate
- this is the lowest apr seen; not an average. The average is closer to 6.46%
- this is based on very high credit scores
- this is based on exquisite borrowing conditions, such as the buyer’s earnings and net worth
- this could just be one rate out of a million, and who knows what the justification was for going so low
- this could be with points
- this could be a small bank with three employees that only needs 5% in order to get rich; they’re not answering to shareholders
works at Deloitte
Coach
Loans are forgiven if you constitute a vote bank. Like students, farmers etc
Mortgages are commodities. There is the cost of funds (rate bank pays for access to capital) + their margin...to build the fancy banks. Now that it's regulated loan officers operate in an acceptable range that must be considered consistent otherwise they get snagged for predatory lending.....my point is, never is there a secret lender so under market they can get all the loans....it's all pretty sanitized now.