brush
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Post by brush on Nov 5, 2015 9:38:14 GMT
Quick question as i am relatively new to rebsoc. What sort of fair or average premium % would lenders buy at from the SM market. I have bought a
few at 2.25% and feel this is fair to both buyer and seller. Sorry if this has been asked before.
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SteveT
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Post by SteveT on Nov 5, 2015 9:53:59 GMT
Quick question as i am relatively new to rebsoc. What sort of fair or average premium % would lenders buy at from the SM market. I have bought a few at 2.25% and feel this is fair to both buyer and seller. Sorry if this has been asked before. It depends entirely on the rate and the loan in question. A part can be listed with 2% premium and still deliver a lower rate than another part with a 5% premium, since buyers will have bid at different rates originally. Also a loan with a high rate and an impeccable payment history will command much higher premiums than a low rate loan with late payments. Some loans won't sell even at 5% discount. Basically I'd look at the average rate the loan originally commanded (ie. are you being offered much more or much less than that), the payment history and discussion threads, and decide what you are comfortable with paying for the privilege of buying into an existing loan immediately.
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Post by betterthanworking on Nov 5, 2015 11:33:45 GMT
…also consider the time to the next interest payment-due date. If payment is imminent, then you will immediately (probably!) collect perhaps 1.5% for the month, and this may be factored into the seller's asking price. You may notice that premiums drop slightly just after payment.
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brush
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Post by brush on Nov 5, 2015 14:03:11 GMT
Thanks for the 3 informative replies. Viperstripes your last sentence is exactly the way i have based my SM purchasing on as well as payment dates.
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brush
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Post by brush on Nov 13, 2015 8:31:01 GMT
Aaah viper and there was me looking for micro loans for a discount  |
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